Lowest inflation rate since 1987

06/08/2009 15:00
  • Inflation plummets to 0.2 percent
  • Price decrease natural gas causes inflation to drop by 1.0 percentage points
  • Annual rent increase 2.8 percent

According to the latest figures released by Statistics Netherlands, the Dutch inflation rate was 0.2 percent in July 2009, the lowest since December 1987. In June, inflation was still 1.4 percent. The eurozone inflation rate dropped to -0.6 percent.

In July, price adjustments for gas and electricity became effective. The price of natural gas plummeted by 20.0 percent, the most substantial price drop since 1987. The lower gas price pushed down inflation by 1.0 percentage points. Price developments for electricity, food commodities and telephone and Internet services also had a downward effect on inflation.

House rents were raised by an average of 2.8 percent in July. The maximum rent increase for the majority of houses is 2.5 percent. For only a small part of rented houses a higher rent increase is allowed. This results in an average rent increase of 2.8 percent. The rent increase had an upward effect on inflation of 0.1 percentage points.

Dutch inflation according to the European harmonised method (HICP) was -0.1 percent in July. For the first time since the introduction of the HICP in 1997, the inflation indicator is negative. Dutch inflation according to the European harmonised method is 0.5 percentage points above the eurozone level.

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