Dutch inflation was 2.6 percent in August, the same as in July. Inflation is defined as the increase in the consumer price index (CPI) in a particular month compared to the same month in the previous year.
Housing, energy and water and transport costs contributed 0.7 and 0.5 percent respectively to August’s inflation rate of 2.6 percent. Food and soft drinks and consumption abroad each contributed 0.2 percentage points to inflation. Other goods and services hardly or not at all contributed to inflation in August.
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 method, Dutch inflation was 2.8 percent in August, i.e. 0.1 percentage points down on July. Eurostat, the European statistical office, calculated an inflation rate of 2.5 percent in the eurozone in August, the same as in July. The level of inflation in the eurozone is one of the main guidelines for the European Central Bank (ECB) to change or refrain from changing the interest rate. According to the ECB, prices in the eurozone are stable, if the inflation rate is close to 2 percent.