According to the consumer price index (CPI) by Statistics Netherlands, the Dutch inflation rate in May 2006 was 1.3 percent. This is a slight increase on April, when prices were up by 1.2 percent on April 2005. The Netherlands has one of the lowest inflation rates in the eurozone.
No remarkable price changes in May
Potatoes, beer, cigarettes, CD’s, DVD’s, flowers and plants were more expensive in May than in April. This was also true for gold jewellery. Fresh vegetables, coffee, tea and financial services were cheaper. These price changes had little effect on the inflation rate, on balance.
The slight rise in inflation can be attributed mainly to a rise in car fuel and telephone prices. In May 2005 these prices went down compared to April, while this year they did not go down in May.
Inflation according to the European method at 1.8 percent
Dutch inflation according to the European harmonised method (HICP) was 1.8 percent in May 2006, same as in April. This means that the Netherlands remains one of the countries with the lowest inflation in the eurozone.
Eurostat, the European statistical bureau, expects inflation in the eurozone in May to reach 2.5 percent. In April inflation in the eurozone was 2.4 percent. The inflation rate in the eurozone is a key indicator for the European Central Bank (ECB) for setting the interest rates. The ECB takes an inflation rate of about 2 percent as its guideline for price stability. The inflation rate in the eurozone is slightly higher.