The Dutch inflation rate was 2.8 percent in August. In July, inflation had reached the highest level in nearly half a decade (3.1 percent). Petrol prices contributed most to the lower inflation rate. Clothing prices and prices of foreign package holidays also pushed down the level of inflation. 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.
Dutch inflation rate
The harmonised consumer price index (HICP) allows comparison between the inflation rates in the various member states of the European Union (EU). 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.
According to the HICP method, inflation in the Netherlands was 2.8 percent in August, i.e. more than twice as high as the average inflation rate in the eurozone. Eurostat, the European statistical office, calculated an inflation rate for the eurozone of 1.3 percent in August. Since October 2012, the Netherlands ranks among the countries with the highest inflation rates in the eurozone. This is largely due to tax increases recently implemented in the Netherlands.
Dutch inflation according to HICP
More figures can be found in the Business cycle dossier.For more information on economic indicators, see the Economic Monitor.