Dutch inflation rate lower again

• Inflation in May 1.6 percent
• Food prices lower inflation
• Inflation rate in the Eurozone at a historic low

The Dutch inflation rate in May 2009 was 1.6 percent. This is 0.2 percent point lower than in April, according to the latest figures by Statistics Netherlands. The inflation rate in the Eurozone reached an unprecedented 0.0 percent.

Food prices helped lower the Dutch inflation rate. Although food was 2.0 percent more expensive than the year before, it has been 3.0 percent more expensive the previous month. The falling price of fresh vegetables contributed to decreasing inflation.

Dutch inflation according to the European harmonised method (HICP) was 1.5 percent in May. This is down 0.3 percent point on the previous month. Inflation in the Eurozone reached 0.0 percent In May, down 0.6 percent point on April. The Eurozone inflation rate has never been so low since the HICP was introduced in 1996.

In the Netherlands the price developments in crude oil influenced the energy prices considerably later than in the rest of the Eurozone. This partly explains the big difference between the Netherlands and the Eurozone. Due to the lower oil prices gas and electricity became much cheaper in most countries in the Eurozone in recent months. In the Netherlands the energy rates for most users are changed in July. Price changes in food, beverages and tobacco also contributed to the difference between the Netherlands and the Eurozone.

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