Inflation in Netherlands drops to 3.1 percent in October

Inflation in the Netherlands was 3.1 percent in October, Statistics Netherlands (CBS) reported in a first quick estimate on Friday. In September, consumer prices were 3.3 percent higher than the year before.

The decrease in inflation this month is due to lower price increases for industrial goods and energy, including motor fuels. Energy became 2.1 percent more expensive in October, compared to 4.0 percent in September. The prices for industrial goods increased by 0.4 percent this month, compared to a 1.5 percent increase last month.

Food and services prices had an upward effect on inflation this month. The prices for food, drinks, and tobacco increased by 3.8 percent, slightly more than September’s 3.7 percent. And services were 4.5 percent more expensive than a year earlier, compared to 4.1 percent in September.

Compared to September, consumer prices in the Nehterlands increased by 0.3 percent in October. Though CBS warned that comparing prices in two different months of the year is more complicated because seasonal effects must be considered. “For example, airline tickets are more expensive during the holiday months than in other months. Prices are temporarily higher, but this is not a structural price increase,” the statistics office said.

CBS also calculated inflation based on the European harmonized method, the EU-standardized method, to make it easier to compare inflation in the different member states. Based on this method, Dutch inflation was 3.0 percent in October, the same as in September.

The main difference between the European method and CBS’s is that the European one doesn’t consider the costs of owning a home. The European statistics agency Eurostat will report inflation figures for the eurozone later on Friday.