Netherlands inflation at 15-year low

7th October 2004, Comments 0 comments

7 October 2004, AMSTERDAM — The lowest Dutch inflation rate in 15 years and the strongest fall in food prices since World War II was recorded in September, it was reported Thursday.

7 October 2004

AMSTERDAM — The lowest Dutch inflation rate in 15 years and the strongest fall in food prices since World War II was recorded in September, it was reported Thursday.

Consumer prices in the Netherlands were on average 1 percent higher in September than in the same month last year, the Central Bureau of Statistics (CBS) said.

Compared to August 2004, the inflation rate in September this year was down 0.1 percent, due to price developments in food, clothing and plants.

The CBS — which calls itself Statistics Netherlands in English and Centraal Bureau voor de Statistiek in Dutch — said the inflation rate in September fell to 1 percent.

"This makes it the lowest inflation rate since June 1989. The highest levels over the last fifteen years were observed late in 1991 and in the spring of 2001, when the inflation rate was 4.9 percent," the CBS said.

The average inflation rate over the past fifteen years was 2.6 percent.

The historically low inflation rate is mainly due to the major fall in the price of food and soft drinks over the past twelve months. Between September 2003 and September 2004 they became 5.7 percent cheaper, the CBS said.

Potato prices fell sharply by 31.8 percent, while eggs became 27 percent cheaper and fresh vegetables 20.2 percent.

"Statistics Netherlands never published such a strong decrease in food prices before in its consumer price index since the Second World War," its report said.

Despite the fact there were price increases from September on August 2004, these were not as high as in the same period of 2003. This resulted in a lower inflation rate.

The September on August price increases in clothing, shoes, fresh vegetables, flowers and plants were lower than in 2003.

The slowdown of the inflation rate, on the other hand, was levelled off by price developments in car fuels. In September, car fuels were 11.3 percent more expensive than in September 2003. In August, this was 9.3 percent.

The Dutch inflation rate according to the European standards was 1.1 percent in September 2004, down 0.1 percent on August.

Eurostat, the European statistical bureau, also expects a 0.1 percent drop in the Eurozone inflation rate in September, bringing it to 2.2 percent.

In August, the Dutch inflation rate was 1.2 percent by European standards, the second lowest in the Eurozone after Finland. The other Eurozone countries had inflation rates of 2 percent or more.

"The comparatively low Dutch inflation rate is mainly due to the lower food prices in the Netherlands," the CBS said.

[Copyright Expatica News 2004]

Subject: Dutch news

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