Inflation rate rises further

Dutch inflation was 2.7 percent in September, 0.1 of a percentage point higher than in August. In the last two years, inflation has risen gradually. 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.

The price development of clothing was the main cause of the rise in inflation in September. The development of petrol prices also had an upward effect. The price development of internet and telephone services, on the other hand, had a downward effect.

Housing, energy and water, and transport costs contributed 0.7 and 0.6 of a percentage point respectively to September’s inflation rate of 2.7 percent. Food and soft drinks contributed 0.3 of a percentage point, and clothing and shoes 0.2 of a percentage point. Other goods and services also contributed to inflation, but to a lesser extent.

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 3.0 percent in September, i.e. 0.2 of a percentage point higher than in August. Eurostat, the European statistical office, calculated an inflation rate of 3.0 percent in the eurozone in September, as against 2.5 percent in August. 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.

In September 2011, the interest rate on the latest Dutch ten-year government bonds was lower than inflation. This is quite an exceptional situation. More information can be found in the article “Interest rate on government bonds lower than inflation”.

Dutch inflation

Dutch inflation

More figures can be found in dossier Business cycle.

For more information on Dutch inflation, see Statistics Netherlands’ online video on YouTube.