Dutch inflation rate higher

Inflation in the Netherlands was 1.2 percent in April 2014, as against 0.8 percent in March. The increase was mainly caused by price developments for motor fuels. Prices for airline tickets and holiday accommodations also had an upward effect on inflation. Inflation is defined as the increase in the consumer price index (CPI) in a particular 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.

In April, Eurostat, the European statistical office, calculated an inflation rate for the Netherlands and the eurozone of 0.6 and 0.7percent respectively. The Dutch inflation rate is still below the eurozone rate, but the gap is closing.

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.