Thursday, May 8, 2014 - 11:38
Inflation jumps to 1.2 percent on fuel costs, holidays
Inflation has risen 1o 1.2 percent in April after being on the decrease for three months. Inflation has always been at a relatively low level in the Netherlands, but this is the biggest increase since the VAT hike in October 2012, the Central Bureau for Statistics (CBS) announce today. Fuel cost development was a big reason for the rise in inflation, but holiday makers had their influence as well. Flight tickets and holiday accommodation during Easter became pricier. This year, Easter fell entirely in the month of April, which it did not last year. So prices for holiday packages were more expensive in April this year than last. Next to the national Consumer Price Index (CPI), there is also a Harmonized Index of Consumer Prices (HICP). The HICP is used to compare inflation between EU member states. Dutch inflation rose to 0.6 percent according to the HICP method. The level of difference between inflation using the CPI and HICP methods are for a large part caused by the fact that the HICP does not take into account the added cost of personal home rent. The Eurostat calculates inflation in the Eurozone for April at 0.7 percent, so the Netherlands is still under European average inflation level, but the difference has become smaller.