Further increase in inflation

14/12/2007 15:00

Dutch inflation was 1.9 percent in November. This is 0.3 of a percentage point up on October and the third increase in a row. Inflation is calculated as the increase of the consumer price index (CPI) compared with the same month in the previous year.

More expensive fuel and food products in particular accounted for the increased inflation rate. Factory gate prices of Dutch food products have risen substantially in the course of 2007. In October, food prices were well over 10 percent higher than one year previously for the fourth month running. Consumer prices for food are now also increasing.

The increase in the costs of transport, housing, water and energy contributed more than half to the 1.9 percent inflation rate. Over a quarter of inflation can be attributed to more expensive food products and higher costs for dining out. 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. Dutch inflation calculated according to this method was 1.8 percent in November, the lowest in the eurozone. Eurostat, the statistical bureau of the EU, estimates that eurozone inflation has risen to 3.1 percent in November. After May 2007, the gap between the Dutch inflation rate and the eurozone average has steadily widened. The - now substantial - difference is caused mainly by price developments of energy and rents.

Dutch inflation

Dutch inflation