Inflation down to 1.5 percent in July

Dutch inflation fell to 1.5 percent in July. In June, consumer prices were on average 1.7 percent up on one year previously. The modest rent increase and lower energy prices largely account for the low inflation rate. Inflation is calculated from the increase of the consumer price index (CPI) relative to the same month one year previously.

The average rent increase was 1.4 percent in July. Such a low increase is unprecedented since 1959. Lower prices for gas and electricity also had a downward effect on the inflation rate. On the other hand, the decrease of the inflation rate is restrained by a price rise for fresh vegetables, flowers and plants in July, whereas last year these products became cheaper in July. 

With 0.4 percentage points, the increase in the costs of housing, water and energy contributed most to inflation in July. In the preceding months, this contribution was 0.8 percentage points. The contribution of various goods and services, like insurances, was 0.3 percentage points. Clothes and footwear contributed 0.2 percentage points to inflation. Communication, e.g. telephone and use of the Internet, reduced inflation by 0.1 percentage points.

The harmonised consumer price index (HICP) allows comparison between the member states of the European Union. According to the HICP method, Dutch inflation was 1.4 percent in July, 0.4 percentage points below the level in June. Inflation in the eurozone was 1.8 percent in July.

Dutch inflation