Dutch inflation slightly up

In April, Dutch inflation was 1.1 percent, i.e. 0.1 of a percent point up on March. Inflation is defined as the increase in the consumer price index (CPI) compared with the same month in the previous year.

The increase was mainly caused by pricier airline tickets; these cost 12.6 percent more in April than in April 2009. In March, plane tickets cost 1.8 percent less than one year previously. Vegetable prices and the cost of consumption abroad also contributed to the modest inflation increase.

With 0.7 of a percent point, the transport sector accounted for most of April’s 1.1 percent inflation. Consumption abroad contributed 0.2 of a percent point. Housing, water and energy had a downward effect on inflation of 0.3 of a percent point. Food and soft drinks and clothing and shoes also had a downward effect, 0.1 of a percent point each. Prices of other goods and services hardly contributed to inflation in April.

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 0.6 percent in April. The average eurozone rate is more than twice as high. Eurostat, the European statistical office, calculated an inflation rate of 1.5 percent in the Eurozone in April. Adjustments in energy prices as a result of changes in oil prices largely account for the huge gap between the Dutch and the eurozone inflation rate. In the Netherlands, adjustments in gas and electricity rates take place in January and July only. In most other European countries these rates change continuously.

Dutch inflation