Inflation unchanged in December

Dutch inflation was 1.9 percent in December and equalled inflation in November 2007. Inflation is calculated as the increase of the consumer price index (CPI) compared with the same month in the previous year.

The increase in the costs of transport contributed 0.5 of a percentage point to the 1.9 percent inflation rate and 0.4 of a percentage point can be attributed to housing, water and energy. More expensive food, drink and tobacco products and higher costs for dining out contributed 0.7 of a percentage point. Prices of clothes, communication services, recreation and culture, on the other hand, had a downward effect on inflation.

In 2007 Dutch inflation was 1.6 percent. It was the fourth year in a row with inflation well under 2 percent. Inflation in 2007 was up by 0.5 of a percentage point on 2006. The abolition of the occupier component of property tax in 2006 substantially tempered inflation in that year.

The harmonised consumer price index (HICP) allows comparison between the member states of the European Union. Dutch inflation calculated according to this method was 1.6 percent in both December and the year 2007. According to Eurostat, the statistical bureau of the EU, eurozone inflation was 3.1 percent in December. The gap between Dutch inflation and the eurozone average has steadily widened since May 2007. In December, the difference came to 1.5 of a percentage point.

Dutch inflation