Inflation rate climbs to 3.0 percent

• Insurance premiums and prices new car substantially higher
• Petrol price has downward effect on inflation
• Effect of VAT, insurance tax and energy tax considerable

January’s inflation rate climbed to 3.0 percent, the highest rate in more than four years. According to the most recent figures released by Statistics Netherlands, consumer prices were on average 2.9 percent up in December from one year previously.

The higher rate is predominantly due to higher insurance premiums. Insurance premiums were on average 7.7 percent higher in January than in January 2012. Prices of new cars are now 7.8 percent up from last year.

The petrol price had downward effect on inflation. The consumer price of petrol was 3.2 percent up in January from twelve months ago, but in December 2012 the petrol price was 6.7 percent higher than in December 2011. Holiday trips abroad also had a downward effect on inflation.

VAT, insurance tax and energy tax contributed 1.4 percentage points to inflation in January 2013, the most substantial contribution since 1992. Insurance tax was raised from 9.7 to 21.0 percent in January 2013 and the tax on new cars and energy tax rates were also raised. The VAT increase introduced in October 2012 also played an important part in this respect.