Inflation rate up

09/01/2014 15:00

The inflation rate in the Netherlands was 1.7 percent in December 2013, i.e. 0.2 percentage points up from November. The inflation increase can largely be attributed to price developments for petrol and clothing. With 1.5 percent, Dutch inflation stood at its lowest level in more than three years in November. 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

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 climbed to 1.4 percent in December. Eurostat, the European statistical office, calculated an inflation rate for the eurozone of 0.8 percent. 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 effects of the tax measures have worn off by now, the gap between the eurozone rate and the Dutch rate has narrowed.

Dutch inflation according to HICP

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.