The inflation rate in the Netherlands was 1.5 percent in October, i.e. 0.1 percentage points down from October. Dutch inflation reached the lowest level in more than three years. 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.
The marginal decrease in inflation from October to November can largely be attributed to prices of package holidays abroad. Food prices also had a downward effect on inflation. Petrol prices, on the other hand, had an upward effect.
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 dropped to 1.2 percent in November. Eurostat, the European statistical office, calculated an inflation rate for the eurozone of 0.9 percent in November. Since October 2012, the Netherlands has ranked among the countries with the highest inflation rate in the eurozone. This was largely due to tax measures. As most of this effect has worn off by now, the gap between the eurozone rate and the Dutch rate has narrowed over the past few months.
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.