Dutch inflation drops to 2.4 percent in January

Daily life in the Netherlands became 2.6 percent more expensive in January compared to the same month last year. That means inflation was lower than in December, when consumer prices increased by 2.8 percent, Statistics Netherlands (CBS) reported.

Compared to December, consumer prices dropped by 0.7 percent in January. “A caveat when comparing two different months of the year is that the influence of the season must be taken into account,” CBS added.

Price increases were lower in January than in December in all product categories, except for energy and motor fuels. Last month, the prices for energy and motor fuels increased by 0.4 percent, while December saw a decrease of -0.4 percent.

Food prices increased by 2.0 percent in January, compared to 3.1 percent in December. Industrial goods became 0.6 percent more expensive, compared to 0.9 percent a month earlier. And service prices rose 3.9 percent in January after a 4.1 percent increase in December.

CBS stressed that this is just a first, quick estimate of price developments in January based on the available data. These figures may change slightly as more data becomes available.

The statistics office also calculated Dutch inflation based on the European harmonized method (HICP), the method agreed upon in the eurozone to make comparing inflation figures simpler. Based on the HICP, Dutch inflation was 2.2 percent in January, down from 2.7 percent in December.

The main difference between the CBS and European methods is that the HICP does not take into account the costs of owning a home. CBS calculates those costs in inflation based on rent trends.