Inflation rate down to 1.0 percent

• Petrol prices exert downward pressure on inflation
• Inflation eurozone further up
• Gap between eurozone and Dutch inflation rates

According to the most recent figures released by Statistics Netherlands, Dutch inflation dropped to 1.0 percent in May, i.e. 0.1 percentage points lower than in April. At the same time, the inflation rate in the eurozone has risen.

The downward trend is mainly caused by petrol price developments. The price of petrol in May was 11.5 percent higher than in May last year. In April, petrol prices were more than 16 percent higher than in April 2009.

Dutch inflation according to the European harmonised method (HICP) has dropped to 0.4 percent. According to the estimate conducted by Eurostat, inflation in the eurozone increased to 1.6 percent in May, creating a considerable gap between the inflation rates in the eurozone and the Netherlands. In the Netherlands, gas and electricity price adjustments usually become effective in January and July. In other countries, gas and electricity prices tend to respond more directly to oil price fluctuations.

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