Energy prices up, inflation stable

• Energy prices considerably up, clothes cheaper
• Inflation in the eurozone drops notably
• Dutch inflation above eurozone average

According to the most recent figures released by Statistics Netherlands, inflation in the Netherlands was 1.9 percent in January, the same as in December 2008. Inflation in the eurozone was significantly lower than in December.

January’s energy prices pushed up inflation. Gas and electricity prices were nearly 14 percent higher in January than one year previously.

Clothing prices had a downward effect on inflation. Clothes were 4.4 percent cheaper in January than a year ago. The effect of January’s sales was stronger than in January 2008.

Premiums for supplementary health insurance were 5.9 percent higher in January than one year previously. The premiums are subject to adjustment once a year. Last year in January, the increase was more than 12 percent. The road tax rate in January was raised by more than12 percent compared to twelve months ago.

Dutch inflation according to the European harmonised methode (HICP) remained stable in January at 1.7 percent, but inflation in the eurozone dropped considerably to 1.1 percent and is far below the level in the Netherlands, as is shown by a Eurostat estimate. In December, the eurozone inflation rate was still 1.6 percent. The decline is the result of lower energy prices. In most European countries, oil price fluctuations affect energy prices more quickly than in the Netherlands.