Inflation rate unchanged, rent up by 2.8 percent

03/08/2006 09:30

The Dutch inflation rate in July 2006 was unchanged. Just like in June, consumer prices were up by an average of 1.3 percent on the year before, according to Statistics Netherlands’ consumer price index. Rents rose by an average of 2.8 percent as per 1 July.

Higher rent increase than in 2005

Rents went up by an average of 2.8 percent in July. This is more than in July of 2005, when rents increased by 2.0 percent. The gas and electricity rates also went up in July.

The developments in housing raised the inflation rate. However, other developments lowered it, so on balance the inflation rate in July did not change.

Cars and clothing cheaper

The price of new cars fell, on average, due to changes in the tax rates. Taxes on energy-efficient cars were lowered while taxes on cars consuming a great deal of energy were raised. The price developments of clothes and shoes lowered the inflation rate somewhat.

Price developments of car fuels also lowered the inflation rate. Car fuel prices went up in July, but not by as much as in July 2005.

Inflation rate according to the European method stays 1.8 percent

According to the European harmonised method (HICP) the Dutch inflation rate in July 2006 was 1.8 percent, making it the fourth month in a row in which this value was calculated. The Netherlands remains one of the countries with the lowest inflation rate in the eurozone.

Eurostat, the European statistical bureau, expects the inflation rate in the eurozone for July to reach 2.5 percent. In May and June the inflation rate in de eurozone was also 2.5 percent.