Inflation rate low

Dutch inflation stood at 0.3 percent in August and remained low. In July, the inflation rate stood at 0.2 percent. Inflation is defined as the consumer price index (CPI) increase relative to the same month in the previous year.

Car fuels in particular accounted for the slight increase in August relative to July. Car fuel prices were more than 10 percent lower in August than one year previously, as against nearly 17 percent in July. Price developments of airline tickets and food products had a downward effect on inflation.

The contribution of the various article groups to inflation hardly changed from July to August. More expensive alcoholic drinks and tobacco products accounted for 0.3 percentage points of inflation and higher prices in the sector hotels and restaurants for 0.2 percentage points. Price developments in the transport sector, on the other hand, had a downward effect on inflation of 0.4 percentage points.

The harmonised consumer price index (HICP) allows comparison between the inflation rates in the various member states of the European Union (EU). According to the HICP, the Netherlands had a deflation rate of  0.1 percent in August. Eurostat, the European statistical office, calculated a deflation rate of 0.2 percent in the eurozone. In preceding months, inflation in the Netherlands was well above the eurozone average. Consequently, the gap between the Dutch inflation rate and the rate in the rest of the eurozone has evaporated.

Dutch inflation