Dutch inflation was 1.1 percent in August 2007, i.e. 0.4 percentage points lower than in July, when consumer prices were on average 1.5 percent higher than one year previously. The consumer price index published by Statistics Netherlands shows that the rate has not been this low in 2007.
Dutch inflation in August is also considerably below the eurozone average.
Vegetables, flowers and clothes push down inflation
Prices of fresh vegetables, clothes, flowers and plants had a downward effect on inflation in August of approximately 0.3 percentage points. Prices of vegetables, clothes, flowers and plants may vary considerably with the season.
In August, prices of fresh vegetables were on average 3.8 percent below the level of one year previously, whereas in July fresh vegetables were much more expensive than in July 2006. The average price level of flowers and plants was 1.2 percent down on last year. In July, prices of flowers and plants were one quarter higher than twelve months ago. Clothes were 2.5 percent more expensive in August relative to the same month in 2006, but the price increase was more moderate than in July, which also had a downward effect on inflation.
Dutch inflation rate far below the eurozone average
Dutch inflation according to the European harmonised method (HICP) also dropped to 1.1 percent in August. In July, Dutch inflation according to the HICP was 1.4 percent. A provisional estimate by Eurostat shows that inflation in the eurozone remained stabled in August at 1.8 percent. This means that inflation in the Netherlands is currently 0.7 percentage points below the eurozone average.