Inflation rate increased to 1.2 percent in April

The inflation in the Netherlands rose to 1.2 percent in April. This is 0.2 of a percent point higher than in March. The increase follows three months of decreasing rates. Inflation is measured as the change of the consumer price index compared with the same period twelve months previously.

Rising inflation is mainly due to the price developments of fresh vegetables and petrol. Also the price rise in women’s clothing helped raise the inflation rate. The lower costs of buying and selling stocks helped to keep the inflation rate down.

Contributors to the 1.2 percent inflation rate in April were the costs for housing, water and energy (0.8 percent point). Transport contributed 0.5 percent point to the inflation rate. Consumer-related taxes and government services had a negative effect of 0.5 percent point, mainly due to the abolition of the real estate tax (OZB) for users as per 1 January 2006.

To allow eurozone comparisons, the inflation rate is also calculated according to the European harmonised method. According to this method the Dutch inflation in April was 1.8 percent. This is 0.4 of a percent point higher than in March. The Netherlands has one of the lowest inflation rates in the eurozone.

Eurostat, the statistical office of the European Union, estimates inflation in the eurozone at 2.4 percent in April. In March the inflation rate was 2.2 percent. Developments in inflation in the eurozone are described in more detail in the Economic monitor.

The Dutch inflation rate