High petrol price has upward effect on inflation

  • Inflation rate up in March due to higher petrol prices
  • Vegetables more expensive due to cold winter
  • Wider gap between Dutch and eurozone inflation rates

According to the latest figures released by Statistics Netherlands, the Dutch inflation rate in March 2010 was 1.0 percent, i.e. 0.2 percentage points higher than in February.

Rising petrol prices have an upward effect on inflation. Petrol became more expensive in March and the price of petrol is currently 17 percent higher than in March 2009. In February, the price of petrol was 13 percent up on one year previously. Petrol prices have reached the highest price level since September 2008.

Higher vegetable prices due to the cold winter also contributed to inflation.

Dutch inflation according to the European harmonised method (HICP) rose to 0.7 percent. A Eurostat estimate shows that the inflation rate in the eurozone was 1.5 percent in March. The gap between the rates in the Netherlands and the eurozone has widened in recent months as price of gas, electricity and heating in the Netherlands are not immediately affected by oil price movements. In many other eurozone countries, the oil price level has a more direct effect on energy prices.