Dutch inflation rate remains stable

06/09/2012 15:00

Dutch inflation was 2.3 percent in August, just as in July. Motor fuel prices had an upward effect on inflation, but prices of clothing, for example, had a downward effect. On balance, inflation remained unchanged. 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 0.6 percentage points respectively to August’s inflation rate of 2.3 percent. Food, drinks and tobacco contributed 0.2 percentage points and so did recreation and culture. Consumer spending abroad also accounted for 0.2 percentage points. Other goods and services 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 August was 2.5 percent. Eurostat, the European statistical office, calculated an inflation rate of 2.6 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.