Inflation rate remains low

• Inflation marginally up as a result of higher motor fuel prices
• Plane tickets and food cheaper
• Difference between Dutch and European inflation rate evaporates

According to the most recent figures released by Statistics Netherlands, Dutch inflation was 0.3 percent in August 2009, i.e. 0.1 percentage points higher than in July, when the lowest level since 1987 was reached. 

The marginal increase is caused by higher motor fuel prices. In August, the price of motor fuels was 10.4 percent down on one year previously, as against 16.7 percent in July. This had an upward effect on inflation.

The increase of the inflation rate was partly offset by cheaper plane tickets and lower food prices. Prices of plane tickets dropped by 11.6 percent relative to last year, food prices by 0.4 percent.

Dutch inflation according to the European harmonised method (HICP) was -0.1 percent, the same as in July. Eurostat estimates inflation in the eurozone at -0.2 percent in August. The gap between the inflation rate in the Netherlands and the eurozone has narrowed to 0.1 percentage points, as opposed to 0.6 percentage points last month.

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