Much lower inflation rate due to cheaper fuel

05/10/2006 09:30

The Dutch inflation rate reached 1.1 percent in September 2006. In August consumer prices were 1.4 percent up on the year before, according to the latest consumer price index by Statistics Netherlands. The Eurostat estimates show that the inflation rate in the eurozone also fell substantially. The Netherlands has had one of lowest inflation rates in the eurozone for some time now.

Lower fuel prices

The inflation rate mainly fell because fuel prices became cheaper. The petrol prices fell substantially in September 2006, making this fuel more than 8 percent cheaper than in September 2005.

The price changes in clothing also helped lower the inflation rate. This is because the normal price increase in September was not as high in 2006 as it was in 2005.

The price developments in potatoes and vegetables, on the other hand, helped raise the inflation rate. Fresh vegetables were 33 percent more expensive in September 2006 than in 2005. 

Inflation rate according to the European method down to 1.5 percent

The Dutch inflation rate according to the European harmonised method (HICP) reached 1.5 percent in September 2006. This is 0.4 percent point lower than in August.

Eurostat estimates the inflation rate in de eurozone in September 2006 at 1.8 percent. In August the inflation rate in the eurozone was 2.3 percent.

The Netherlands has one of the lowest inflation rates in Europe. Germany is also one of the countries with a low inflation rate. German inflation fell from 1.8 percent in August to 1.1 percent in September. This is also due to the sharp fall in fuel prices, just like it is in the Netherlands.