Dutch Inflation Rate Steady in July


Netherlands annual inflation was recorded at 1 percent in July of 2015, the same pace as in the previous month. A slowdown in prices of housing and utilities was enough to offset an increase in cost of vacation accommodations.

Year-on-year, prices of housing and utilities increased at a slower 1.3 percent from 2.6 percent in the previous month; while prices of hotels, cafes and restaurants were up 3.3 percent, compared to 1.6 percent in June. Additional upward pressure came from: miscellaneous goods and services (+2.4 percent); alcoholic beverages and tobacco (+2.4 percent); consumption abroad (+1.2 percent); recreation and culture (+0.8 percent); and food and non-alcoholic beverages (+0.7 percent).

In contrast, downward pressures came from cost of communication (-2.4 percent); education (from -1.5 percent); and transportation (-0.6 percent).

Core inflation was recorded at 1.6 percent, the same pace as in the previous month.

On a monthly basis, consumer prices increased 0.8 percent, after falling 0.4 percent in the previous month, mainly due to higher prices of recreation and culture (+4.5 percent from -0.2 percent in June); hotels, cafes and restaurants (+3.5 percent from -0.8 percent in June); and food and non-alcoholic beverages (+0.4 percent from -0.1 percent in June). In contrast, cost of clothing and footwear declined further by 11.3 percent (from -4.8 percent in June).

The harmonized consumer price index increased by 0.8 percent year-on-year and by 0.7 percent compared to June.

CBS | joana.ferreira@tradingeconomics.com
8/6/2015 9:27:58 AM