Dutch inflation further up

The Dutch inflation rate climbed to 3.1 percent in July, the highest level in nearly half a decade. June’s inflation rate stood at 2.9 percent. The increase was mainly due to the relatively high rent increase effective from 1 July. Phone rates, prices of internet services and clothing prices also had an upward effect on inflation. Natural gas prices and car prices, on the other hand, had a downward effect on inflation. Inflation is defined as the increase in the consumer price index (CPI) in a given month compared to the same month in the previous year.

Dutch inflation rate

The harmonised consumer price index (HICP) allows comparison between the inflation rates in the various member states of the European Union (EU). The level of inflation in the eurozone is one of the main guidelines for the European Central Bank (ECB) to change or refrain from changing the interest rate. According to the ECB, prices in the eurozone are stable, if the inflation rate is close to 2 percent.

According to the HICP method, the inflation rate in the Netherlands was 3.1 percent in July,  i.e. nearly twice as high as the average inflation rate in the eurozone. Eurostat, the European statistical office, calculated an inflation rate for the eurozone of 1.6 percent in July.                                                 

Dutch inflation according to HICP

More figures can be found in the Business cycle dossier.

For more information on economic indicators, see the Economic Monitor.