Netherlands' inflation turns negative; first time in 30 years

For the first time in nearly 30 years, products and services in the Netherlands were cheaper than in the month before. In July inflation fell to minus 0.3 percent, Statistics Netherlands announced on Thursday.

The dip can mainly be attributed to cheaper food, fuels and air travel. On the other hand, discounts on clothes were less significant than in July last year, having an increasing effect on the average price level.

Statistics Netherlands also looked at inflation excluding energy, food, tobacco and alcohol as the prices on these products often fluctuate widely. According to this calculation, in July inflation stood at plus 0.3 percent, compared to 0.5 percent in the previous two months.

Based on the harmonized European calculation method, inflation in the Netherlands amounted to minus 0.6 percent, compared to minus 0.2 percent in June.