Fuel prices push up inflation in the Netherlands in December

Dutch inflation stood at 1.9 percent in December, an increase by 0.3 percentage points compared to November. The increase was mainly caused by price developments for automotive fuels. Inflation is defined as the increase in the consumer price index (CPI) compared to the same month in the previous year.

Fuel price developments obviously had an upward effect on inflation. In December, prices at the petrol station were more than 13 percent up on one year previously, versus 8 percent in November. Clothes and phone rates also contributed to a higher inflation rate.

With 0.5 percentage points, the transport sector contributed most to inflation followed by housing, energy and water (0.4 percentage points). Communication and higher spending abroad each contributed 0.2 percentage points. Audio and video equipment, computers and software had a downward effect of 0.1 percentage points. Other goods and services hardly contributed to inflation.

The harmonised consumer price index (HICP) allows comparison between the inflation rates in the member states of the European Union (EU). According to the HICP, Dutch inflation was 1.8 percent in December, an increase by 0.4 percentage points compared to November. Eurostat, the European statistical office, calculated an inflation rate of 2.2 percent in the eurozone in December.

One of the main guidelines for the ECB’s decision to change or refrain from changing the interest rate is the level of inflation in the eurozone. According to the ECB, prices in the eurozone are stable, if the inflation rate is close to 2 percent.

Dutch inflation

More figures can be found in dossier Business cycle.