According to Statistics Netherlands’ consumer price index, Dutch inflation was 1.9 percent in December, the same as in the previous month. The Netherlands has one of the lowest inflation rates in the eurozone
Car fuel prices tempers inflation
Prices of car fuels tempered inflation by 0.1 of a percentage point in December. Petrol, diesel and LPG cost nearly 12 percent more than twelve months previously. In November prices of these products were 15 percent higher than twelve months earlier. Price developments for food on the other hand pushed up inflation by nearly 0.1 of a percentage point. As a result the rate remained unchanged on November.
Dutch inflation lower than eurozone
Dutch inflation calculated according to the European harmonised method (HICP) was 1.6 percent in December. This is 0.2 of a percentage point lower than in November. Eurostat expects eurozone inflation to be 3.1 percent in December. This puts Dutch inflation 1.5 percent below the eurozone rate.
Inflation 1.6 percent in 2007
For the whole of 2007, inflation in the Netherlands was 1.6 percent. In 2006 it was 1.1 percent, the lowest rate since 1989. The increase in inflation in 2007 was mainly the result of substantial price decreases in 2006 which no longer had an effect in 2007. In 2006, for example, the part of property tax paid by the occupier of the property was abolished.