Inflation up

Dutch inflation was 2.3 percent in May, 0.3 percentage points up on April. Higher food and fuel prices mainly accounted for the rising inflation rate. Inflation is calculated as the increase of the consumer price index (CPI) relative to the same month in the previous year.

Higher prices for food and non-alcoholic drinks contributed 0.7 percentage points to May’s inflation rate. The costs of transport and petrol also contributed 0.7 percentage points. The category ‘various goods and services’ (e.g. insurances) contributed 0.4 percentage points. Prices of recreational and cultural activities and communication services, on the other hand, had a downward effect of 0.2 percentage points.

The harmonised consumer price index (HICP) allows comparison between the member states of the European Union (EU). Dutch inflation according to the HICP was 2.1 percent in May. This is 0.4 percentage points up on April. Inflation in the Netherlands in May was still far below the eurozone average of 3.6 percent, as calculated by Eurostat.

More than one third of consumers (twice as many as in May 2007) thought that prices had risen over the past twelve months. The proportion of Dutch consumers expecting prices to go up further in the coming twelve months was 29 percent, just a fraction higher than one year previously. This picture emerges from the Consumer Confidence Survey.

Dutch inflation