Public wrong on inflation
11 July 2005AMSTERDAM — Dutch consumers 'experience' stronger price increases than is actually the case, new research by the Dutch Central Bank (DNB) indicates.
11 July 2005
AMSTERDAM — Dutch consumers 'experience' stronger price increases than is actually the case, new research by the Dutch Central Bank (DNB) indicates.
"The mere mention of the euro is enough to add 3 percent to this perceived inflation," a spokesperson said.
The central bank said on Monday the perceived inflation over the last four years surpasses the real inflation rate.
The total of the price rises consumers feel have taken place over this period amounts to a rate of 12 percent. Real price rises, rated on the consumer price index, amount to 8.4 percent.
The perceived inflation rate rises even further to 15 percent when consumers add in their memories of how things were before the introduction of the euro in 2002.
The DNB said prices increased by half a percent with the introduction of the euro, leading to an inflation rate of 3.6 percent in the first half of 2002. Without the euro, the rate would have been 3.1 percent.
After 2002, inflation rate steadily declined. The inflation rate in the Netherlands was 1.6 percent in June this year. under the 2 percent target rate set by the European Central Bank.
[Copyright Expatica News + ANP 2005]
Subject: Dutch news