According to the consumer price index (CPI), the inflation rate in the Netherlands was 0.6 percent in February. In January consumer prices were also 0.6 percent up from one year previously. Statistics Netherlands reports that inflation has been below 1 percent for the seventh month in a row.
Petrol price puts downward pressure on inflation, prices holiday cottage parks drive inflation up
In February petrol price developments had a downward effect on inflation. The average price of one litre of unleaded petrol was 1.40 euros in February, the lowest price level in more than six years. In January the average price was 1.43 euros.
Airline ticket prices also forced inflation down, but rental prices of cottages in holiday parks and mobile phone prices drove inflation up. On balance, the rate remained unchanged.
Inflation higher without energy, food, alcohol and tobacco
As prices of energy and food products tend to vary considerably and alcohol and tobacco prices are frequently raised as a result of higher excise duty rates, inflation is also calculated excluding these product groups. According to this criterion, the rate was 1.3 percent in February, versus 1.0 percent in January.
Dutch inflation rate above eurozone level
In addition to the consumer price index (CPI), Statistics Netherlands also calculates the European harmonised price index (HICP).
Dutch inflation according to the HICP was 0.3 percent in February, i.e. marginally higher than in January when the rate stood at 0.2 percent. Dutch inflation remains higher than in the eurozone. The eurozone rate fell to - 0.2 percent in February. The negative rate in the eurozone is mainly caused by plummeting energy prices. If energy prices are not taken into account, the eurozone rate would have been 0.7 percent.
The HICP is calculated according to the European harmonised method to facilitate comparison between the various EU member states. Price index figures for the eurozone and the European Union as a whole are calculated on the basis of the HICPs of the separate member states. The European Central Bank uses these figures to formulate its monetary policy.
Unlike the CPI, the HICP does not take into account the costs related to home ownership. In the Dutch CPI, these costs are calculated on the basis of rent levels. Because the rent increase is higher than the average price increase of other goods and services, the CPI-based inflation rate is currently higher than the HICP-based inflation rate.