Inflation rate marginally up to 2 percent

The latest figures published by Statistics Netherlands show that January’s inflation rate has climbed to 2.0 percent whereas in December, consumer prices were on average 1.9 percent higher than one year previously. The rate has been below 2 percent for nearly 2 years.

Electricity prices contributed most to inflation. In January 2010, electricity prices dropped considerably. This had a downward effect on inflation during the entire year 2010. The effect has now faded. Prices of telephone and Internet services increased by 6.3 percent in 2010 and also contributed to inflation. Fresh vegetables had a downward effect on inflation in January. On balance, food prices rose by 0.8 percent relative to last year. Clothing prices also pushed down the inflation rate in the Netherlands.

Premiums for supplementary health insurance were raised by an average of 3 percent in January. Health insurance premiums are adjusted annually in January. This is the smallest price increase since the introduction of the new health insurance system in 2006. The road tax rate increase in January was also more modest than last year.

Inflation according to the European harmonised method (HICP) climbed to 2.0 percent in the Netherlands. Eurostat reports that the eurozone inflation rate has risen to 2.4 percent in January. Such high rates have not occured in the eurozone and the Dutch HICP since October 2008.