Inflation rate climbs to 1.9 percent

• Motor fuel prices contribute to higher inflation rate
• Inflation averages 1.3 percent over 2010
• Eurozone inflation rate above 2 percent

According to the most recent figures released by Statistics Netherlands, inflation was 1.9 percent in December, versus 1.6 percent in November. December’s rate is the second highest after March 2009.

The inflation increase is predominantly attributable to higher motor fuel prices. In December, fuel prices were 13.4 percent higher than one year ago. On an annual basis, the increase in November was 7.9 percent. Clothes prices and phone rates also had an upward effect on inflation.

The average inflation rate over the entire year 2010 was 1.3 percent, versus 1.2 percent over 2009. Automotive fuels were the main cause for the increase. The average annual price at petrol stations last year was the highest ever. Higher phone rates also had an upward effect on annual inflation, but lower prices for electricity and gas in the first six months of 2010 had a downward effect on inflation.

According to the European harmonised methode (HICP), Dutch inflation was 1.8 percent, i.e. 0.4 percentage points higher than in November. The Eurostat inflation rate in the eurozone in December stood at 2.2 percent, as against 1.9 percent in November. The Dutch inflation rate has been below the eurozone level for more than a year now.