Inflation ticks up to 0.4 percent, slightly higher than Europe

Inflation in the Netherlands has risen to 0.4 percent, according to the consumer price index (CPI) measurement, reports the Dutch Central Bureau for Statistics (CBS). After a sharp decline in January, inflation is rising for the second consecutive month. In February, it stood at 0.2 percent.

According to the Harmonized Index of Consumer Prices (HICP), which is used as an indicator for the monetary policy of the European Central Bank, inflation in the Netherlands is at -0.3 percent. This is a higher than it was in February, when inflation was at -0.5 percent.

Increased inflation could be explained by the rise in oil prices that had followed a sharp fall of the commodity's cost in January. Inflation – excluding food, alcohol, energy and tobacco – rose slightly. Because prices for food and energy are subject to strong fluctuations, and prices for alcohol and tobacco are subject to taxation, exclusion of these products allows for a more stable estimate. Inflation, according to this measure, rose in March by 0.1 percent to reach the level of 1 percent.

Inflation in the Netherlands calculated through the HICP remains lower than in the Eurozone. In March, inflation in the euro area rose to -0.1 percent, as compared to the Dutch level at -0.3 percent.

Unlike the CPI, the HICP does not take into account the costs of individuals' home accommodation. Because rents have been increasing recently, the CPI indicator thus produces larger figures than the HICP.