Inflation up

Dutch inflation was 1.6 percent in October. This is 0.3 percentage points up on September. The increase is mainly caused by higher food prices. Inflation is calculated from the increase of the consumer price index (CPI) relative to the same month one year previously.

The increase in the costs of food, beverages and tobacco contributed 0.3 percentage points to the inflation rate of 1.6 in October. In September, the contribution of these products to inflation was negligible. In the course of 2007, factory gate prices in the Dutch food manufacturing industry grew considerably. In September, food prices were more than 10 percent higher than one year previously for the third month running. Consumer prices for food are rising as well.

The increase in the costs of transport, housing, water and energy contributed 0.8 percentage points to inflation. Prices of clothes, communication services, recreation and culture, on the other hand, had a downward effect on inflation.

The harmonised consumer price index (HICP) allows comparison between the member states of the European Union. According to this method, Dutch inflation also was 1.6 percent in October, as against 1.3 percent in September. Eurostat, the statistical bureau of the EU, estimates that the eurozone inflation rate has risen to 2.6 percent in October. Since June, the gap between the Dutch inflation rate and the eurozone average has steadily widened.

Dutch inflation