Lowest inflation rate since November 2010

07/11/2013 15:00

Inflation rate plummets to 1.6 percent
Effect VAT on inflation no longer noticeable
Inflation rate in the Netherlands still above eurozone level

The latest figures released by Statistics Netherlands show that the inflation rate dropped to 1.6 percent in October, the lowest level since November 2010. In September, consumer prices were still 2.4 percent higher than one year previously. Over the past three months, the rate has fallen from 3.1 to 1.6 percent.

In October 2012, inflation rose rapidly as the highest VAT rate was raised from 19 to 21 percent. This has had an upward effect on inflation during the past year, but the effect has worn off by now. Petrol and food prices had a downward effect on inflation. The price of one litre of unleaded petrol was 6.1 percent down in October from the same month last year. Food prices were 1.1 percent higher in October than in October 2012. On an annual basis, the price increase in September was 2.3 percent.

Inflation according to the European harmonised method (HICP) fell to 1.3 percent, i.e. 1.1 percentage points lower than in September. The Dutch inflation rate is still above the eurozone level. The eurozone inflation rate published by Eurostat dipped to 0.7 percent