Inflation lower due to gas and electricity

• Energy over 17 percent cheaper than a year ago
• Food  cheaper
• Dutch inflation further below the Eurozone inflation rate

According to the latest figures by Statistics Netherlands the Dutch inflation rate in January 2010 was 0.8 percent. This is 0.3 percent point lower than in December. Inflation fell for the first time in five months.

The decrease in January is mainly due to the adjustment of the energy rates in that month. Electricity became 5.0 percent cheaper in January. Although gas became 1.0 percent more expensive in January, the rates had been lowered substantially in July. This makes that the price of gas was well over 21 percent below last year’s level. The energy price was down by over 17 percent on the year before. The energy rates depend indirectly on the oil prices and are adjusted twice a year in the Netherlands. This is why the changes in oil prices influence the inflation rate after some delay.

Food prices in January were down by 2.0 percent on the year before. In December this was 1.1 percent. This was mainly due to the large number of special offers by the super markets.

The premiums for supplementary health insurance were raised by an average 5.2 percent in January. In January 2009 they were raised by 5.9 percent.

Dutch inflation in January according to the European harmonised method (HICP) was 0.4 percent. According to the Eurostat estimate, the inflation rate in the Eurozone for January was 1.0 percent. Therefore the Dutch inflation rate is well below that of the Eurozone.

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