Dutch inflation rate climbs to 2.3 percent

Dutch inflation was 2.3 percent in July 2012, i.e. 0.2 of a percentage point higher than in June. The annual increase in rent, higher prices for cars due to tax measures and more expensive holidays abroad had an upward effect on inflation, whereas prices of natural gas, clothing and phone fees had a downward effect. 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, water, energy and transport contributed 0.7 and 0.4 of a percentage point respectively to July’s inflation rate of 2.3 percent. Food, drinks and tobacco contributed 0.3 of a percentage point, just as recreation and culture. Consumer spending abroad accounted for 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, the Dutch inflation rate in July was 2.6 percent. Eurostat, the European statistical office, calculated an inflation rate of 2.4 percent for the eurozone. 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.