Inflation a fraction lower

Dutch inflation was 2.4 percent in April 2012, i.e. of a 0.1 percentage point down on March. The marginal decrease is due mainly to changes in food and tobacco prices. 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.

Prices of housing, energy and water and of transport contributed 0.7 and 0.4 of a percentage point respectively to April’s inflation rate of 2.4 percent. Other goods and services also contributed to inflation, though 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, the Dutch inflation rate in April was 2.8 percent versus 2.9 percent in March. Eurostat, the European statistical office, calculated an inflation rate of 2.6 percent for the eurozone, also 0.1 of a percentage point down on March. 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.

Dutch inflation rate

Dutch inflation rate

More figures can be found in the Business cycle dossier.

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