Inflation rate continues to rise

07/01/2010 15:00
  • Petrol prices increase inflation to 1.1 percent in December
  • Dutch inflation rate below the eurozone level
  • Inflation rate over 2009 averages 1.2 percent

December’s inflation rate was 1.1 percent, that is 0.1 percent points up on November. According to the latest figures released by Statistics Netherlands, inflation rose for the fifth consecutive month in December.

The price of petrol in particular had an upward effect on inflation. Petrol prices were 17 percent higher in December than one year previously, whereas prices of clothes tempered inflation as sales started earlier this year and retailers gave higher discounts. Clothes were 3.8 percent cheaper than a year ago.

Inflation in Europe currently higher than in the Netherlands

Dutch inflation according to the European harmonised methode (HICP) stood at 0.7 percent in December. Eurostat’s estimate for inflation in the eurozone in December is 0.9 percent. As a result, Dutch inflation is now below the eurozone level for the first time since November 2008.

Inflation rate over 2009 second lowest in two decades

The inflation rate over 2009 averaged 1.2 percent. In the past twenty years, the annual rate was only lower in 2006. Over the entire year 2009, petrol prices had a downward effect on inflation. TV sets and video equipment became much cheaper. The price of natural gas was on average 2.5 percent lower in 2009 than in 2008.

Goods and services which contributed most to inflation were house rent, cigarettes and electricity supply. House rents increased by an average of 2.4 percent relative to twelve months ago. Cigarette prices went up considerably in 2009 after excise duty increase was imposed at the end of 2008.