inflation rate up due to motor fuels and holidays

08/05/2014 15:00
  • Inflation rate up from 0.8 to 1.2 percent
  • Inflation rate higher after three months of decline
  • Gap with eurozone rate narrows

According to the most recent figures released by Statistics Netherlands today, the inflation rate rose to 1.2 percent in April after three months of decline. This is the most substantial increase since the higher VAT rate was introduced in October 2012, but the Dutch inflation rate is still at a relatively low level.

Motor fuel prices had a notable effect on inflation. Airline tickets and holiday accommodations also contributed to the higher inflation rate. This is partly due to the fact that - contrary to last year - the Easter weekend fell in April in 2014. During Easter weekends, the demand for holiday accommodations and airline tickets is always higher and prices will go up. As a result, holiday prices were higher in April 2014 than in April last year.

In addition to the national consumer price index (CPI), the European Harmonised Consumer Price Index (HICP) is used to compare the inflation rates in the various member states of the European Union. According to the HICP, the Dutch inflation rate rose to 0.6 percent in April. The difference between the inflation levels according to the CPI and the HICP is largely caused by the fact that the HICP does not include the rent attributed to home owners. According to Eurostat, the eurozone inflation rate was 0.7 percent in April. The Dutch rate is still below the eurozone level, but the gap is closing.