In July, the Dutch inflation rate stood at 0.2 percent, as against 1.4 percent in June. The downturn was chiefly caused by lower energy prices. The rate is the lowest in well over two decades. Inflation is defined as the consumer price index (CPI) increase relative to the same month in the previous year.
The contribution of article groups to inflation hardly changed from June to July, with the exception of housing costs, water, electricity and gas. This group had a slightly downward effect on inflation in July of -0.1 percentage points. In the preceding months, this category accounted for 0.9 percentage points, making it the largest contributor to inflation.
Contribution to inflation
The harmonised consumer price index (HICP) allows comparison between the inflation rates in the various member states of the European Union (EU). According to the HICP, the Netherlands experienced a deflation rate of 0.1 percent in July. According to Eurostat, the European statistical office, deflation in the Eurozone was 0.7 percent. As a result, the gap between the Dutch and the Eurozone inflation rate has narrowed compared to the preceding months.