Inflation rate soaring

07/08/2008 15:00
  • Gas and electricity prices main cause of inflation
  • House rents 1.9 percent up in July

Dutch inflation stood at 3.2 percent in July, i.e. 0.6 percentage points higher than in June. For the first time since 2002, the rate crossed the 3 percent mark. The Consumer Price Index published by Statistics Netherlands shows that the increase is almost entirely attributable to higher gas and electricity prices.

Gas and electricity prices were raised in July. The price of natural gas was raised by 6.9 percent relative to June. This is partly due to higher oil prices, which – with some delay – affect natural gas prices. Electricity prices rose by 3.2 percent.

This year’s house rent increase imposed in July averaged 1.9 percent, as against 1.4 percent in July 2007. The maximum increase allowed for most rented houses is 1.6 percent. For a small selection of houses, a higher increase is allowed. Consequently, the average annual rent increase exceeds 1.6 percent.

Inflation in the Netherlands according to the European harmonised method (HICP) stood at 3.0 percent in July, 0.7 percentage points higher than in June. According to an estimate conducted by Eurostat, inflation in the eurozone was 4.1 percent, 0.1 percentage points up on June. The gap between the Dutch rate and the eurozone rate has narrowed considerably. Yet, the Netherlands is still among the countries with the lowest inflation rate in the eurozone.