Inflation reaches 3.4% in September

Dutch inflation according to the European harmonised index was 3.7% in September

According to Statistics Netherlands consumer price index, inflation in the Netherlands was 3.4 percent in September 2002, 0.1 of a percent point higher than in August.

On the one hand prices of fresh vegetables and flowers rose sharply in September compared with one year ago, while on the other hand the increase in the price of clothes was smaller in September.

Inflation quite stable since May
Inflation in the Netherlands was 3.4 percent in September. The rate of inflation fell in the first months of this year, to 3.3 in May. In the subsequent months it remained quite stable, with value of between 3.3 and 3.5 percent.

The slight rise in inflation in September can mainly be attributed to the price increase for fresh vegetables. In September prices of these products were 16 percent higher than twelve months previously. In August the increase was only 3 percent compared with the same month in 2001. Price developments for garden items flowers and plants also contributed to the increase in inflation. In August these products cost 3 percent more than the same month last year, in September prices were 7 percent higher.

The smaller price increase for clothes curbed inflation slightly. In August clothes were 4 percent more expensive than last year, in September this was only 2 percent.

Prices up 1 percent in September
Prices rose by an average 1.0 percent between August and September, quite a normal change for September. Clothes and shoes rose by 11.8 percent as a consequence of the introduction of the new winter collections.

Fresh vegetables were 15.9 percent more expensive, mainly the result of the bad weather in Europe this summer. University and college fees, other fees in education and the price of training courses went up, as did the price of car fuels.

Prices for cd’s, fish and holiday accommodation in the Netherlands went down.

Derived consumer price index
Inflation according to the derived consumer price index for employee households in the low income bracket was 3.3 percent in September, 0.1 of a percent point higher than in August. This index is often used to adjust government rates, collective wage agreements and other contracts.

Inflation according to the European norm
Statistics Netherlands not only compiles the national consumer price index, but also the European harmonised consumer price index (HICP) for the Netherlands. This index makes up part of the inflation rate of the Eurozone, an official guideline for the monetary policy of the European Central Bank.

In September 2002 inflation in the Netherlands according to the HICP was 3.7 percent, 0.1 of a percent point lower than in August.
The combination of an increasing rate of inflation according to the national CPI and a decreasing figure according to the HICP can be attributed to differences in rounding.

Average inflation in the Eurozone was 2.1 percent in August, 0.2 of a percent point up on the July figure. The Netherlands had the third highest rate of inflation in the European Union, after Ireland and Portugal.

The September figures for the individual countries of the Eurozone and of the European Union will be published by Eurostat, the statistical office of the EU, on 16 October. Eurostat expects inflation for the Eurozone as a whole in September to increase from 2.1 to 2.2 percent.

(source: Statistics Netherlands)

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