Lowest inflation rate since 1989

09/11/2006 16:41

The Dutch inflation rate in October 2006 was 0.9 percent, the lowest result since March 1989. In September, consumer prices were 1.1 percent higher than one year previously. Inflation is calculated as the year-on-year change of the consumer price index.

Contributors to the 0.9 percent inflation rate in October were the costs for housing, water and energy (1.0 percent point). Food and non-alcoholic beverages contributed 0.2 percent point. Consumer taxes and government services helped lower the inflation rate by 0.4 percent point, transport by 0.2 percent point.

Compared to September, the contribution of food and non-alcoholic beverages to the inflation rate decreased by 0.2 percent point. In October there were considerable price cuts for vegetables and fruit. In October, prices of fresh vegetables were 9.3 percent up on one year ago, but in September the price gap was no less than 33.2 percent.

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 October was 1.3 percent. This is 0.2 percent point less than in September. The Netherlands has had one of the lowest inflation rates in the eurozone for some time now.

According to Eurostat, the statistical office of the European Union, the inflation rate in the eurozone averaged 1.6 percent in October. In August the inflation rate in the eurozone was still 2.3 percent, in September 1.7 percent.