Inflation stable at 2.7 percent in May

Inflation in the Netherlands amounted to 2.7 percent in May, Statistics Netherlands (CBS) reported in a quick estimate. That means that inflation was the same as in April. In March, daily life became 3.1 percent more expansion.

Inflation decreased in April due to lower prices for stays in bungalow parks. Around public holidays and during holidays, the prices of tourism services are higher because more people go on holiday. Because Easter fell early this year and the May holidays came late, April had fewer vacation days than last year. As a result, prices to stay in bungalow parks in April this year were, on average, lower than last year.

In May, energy and motor fuels became 4 percent more expensive, according to CBS. April saw a smaller increase of 3.3 percent. Food, drinks, and tobacco prices increased by 3.1 percent in May, compared to 3.2 percent the previous month. Services became 4.5 percent more expensive this month, compared to an increase of 4 percent in April. Industrial goods, excluding energy and motor fuels, saw a price decline of 1.8 percent, compared to a decline of 0.8 percent in April.

Dutch inflation based on the European harmonized method was 2.7 percent in May, compared to 2.6 percent in April. This calculation method is slightly different from CBS’s. The method agreed within the European Union to measure inflation does not consider the costs of living in your home.

The European statistics agency Eurostat will also present a preliminary estimate of inflation in the eurozone in April later in the morning. Inflation in the euro area remained unchanged at 2.4 percent in April.

Earlier this week it emerged that inflation in Germany, the largest economy in the eurozone, increased slightly in May. A slight increase in inflation is also expected for the entire eurozone. Nevertheless, the financial markets expect the European Central Bank (ECB) to cut interest rates next week now that inflation is approaching the 2 percent target.