Dutch inflation rate 1.4 percent in August

07/09/2006 13:20

The Dutch inflation rate in August was 1.4 percent. This is 0.1 of a percent point higher than in July. Inflation is calculated as the year-on-year change of the consumer price index.

Fresh produce became much more expensive in August. Potatoes were more expensive than in August 2005, as were fresh vegetables, fresh fruit, flowers and plants.

The prices for clothes and shoes rose by more than in August of 2005. Therefore the price development of these articles helped raise the inflation rate. The price development of petrol and gas, on the other hand, helped reduce the inflation rate.

Contributors to the 1.4 percent inflation rate in August were the costs for housing, water and energy (1.0 percent point). Transport contributed 0.3 percent point. Consumer taxes and government services helped lower the inflation rate by 0.5 percent point. This is mainly due to the abolition of the user part of the real estate tax (OZB) as per 1 January 2006.

To allow comparisons between the member states of the European Union, the inflation rate is also calculated according to the European harmonised method. According to this method, the Dutch inflation rate in August was 1.9 percent. This is slightly higher than in July. The Netherlands still has one of the lowest inflation rates in the eurozone.

According to Eurostat, the statistical office of the European Union, the inflation rate in the eurozone averaged 2.3 percent in August. It is decreasing slightly. In July the inflation rate in the eurozone was 2.4 percent.  

The Dutch inflation rate

Inflation