Inflation marginally down

• Clothes and fuels temper inflation
• Mobile phone rates up
• Dutch inflation far below eurozone average

According to the most recent figures released by Statistics Netherlands, Dutch inflation stood at 0.8 percent in February 2010, i.e. 0.1 percentage points below the definitive figure for January.

The small decline in inflation in February is chiefly the result of lower clothing prices compared to one year previously. Prices dropped 1.5 percent relative to February 2009. In January, clothing prices were still 1.2 percent higher than twelve months previously. This is caused by the fact that the sales period lasted longer than in 2009..

Motor fuel prices were considerably higher in February than in the same month last year, but the price increase was less substantial than in January. This had a downward effect on inflation.

Mobile phone rates increased remarkably. As a result, prices related to communication services increased by 3.9 percent in February relative to January. This is at variance with the overall downward trend in prices for communication services.

Inflation according to the European harmonised method (HICP) remained unchanged at 0.4 percent in February. According to an estimate conducted by Eurostat, inflation in the eurozone was 0.9 percent in February. Dutch inflation is obviously below the eurozone level, whereas in 2009 the inflation rate in the Netherlands was still considerably above the average level of inflation in the eurozone. These discrepancies are predominantly caused by the effects of price developments on the energy market, which reach the Netherlands with some delay.