Inflation rate further down

In February, Dutch inflation was 0.8 percent, i.e. 0.1 percentage points down on January. Inflation fell for the second month in a row. Inflation is defined as the consumer price index (CPI) increase relative to the same month one year previously.

The decrease is predominantly caused by clothing prices. Clothes were 1.5 percent cheaper than in February 2009, as opposed to January, when clothes prices were 1.2 percent up on twelve months previously. This is caused by the fact that the sales period early this year lasted longer than in 2009.

Motor fuel prices also had a downward effect on inflation. They were much higher in February 2010 than in February 2009, but the increase was less substantial than in January.

With 0.6 percentage points, the transport sector accounted for most of February’s inflation. Housing, water and energy prices had a downward effect of 0.4 percent. Other goods and services hardly contributed to inflation.

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 an inflation rate of 0.4 percent in February. Eurostat, the European statistical office, calculated an inflation rate of 0.9 percent in the Eurozone in February.

Dutch inflation