The average inflation rate in 2016 at 0.3 percent, CBS announced. This is the lowest increase in prices of goods and services for consumers after 1987. In 2014 and 2015 the increase was too low. In the last months of 2016, inflation rose to 1.0 percent in December.
Historically low inflation
0.3 percent inflation at historically low levels for the third year in a row. The price increase was in 2014 and 1.0 in 2015 and 0.6 percent respectively. Over the past 50 years, inflation is only in 1986 and 1987 was lower than in 2016.
Many consumer products are hardly risen in price. Goods were on average 0.2 percent lower in 2016. Services other hand, were 0.9 percent higher. However, this price increase was the lowest after 2006.
Electricity lowers inflation
Inflation was printed in 2016 by the fall in prices of electricity. Both the charges as the tariffs went down. In addition, the rent increase was lower than in 2015 and were airline tickets and vacations abroad cheaper. Consumers paid less for services provided by banks.
By contrast, the price development of gas had an upward effect on inflation. Unlike electricity tax on gas went up. Clothing was more expensive and the price drop of gasoline in 2016 was less than in 2015.
CAO wages rise faster than consumer prices
For the second consecutive year, the negotiated wages increased more than inflation. The increase was 1.9 percent in 2016. In the past 30 years, the CAO wage increase was only in 1987 and 2009 so far above the inflation rate as in 2016.
Netherlands inflation slightly lower than in the eurozone
In addition to the consumer price index (CPI), Statistics Netherlands also calculates the European harmonized index (HICP).
Dutch inflation according to the HICP amounted on average in 2016 at 0.1 percent. That is the lowest figure since the start of measurement in 1997. Inflation in the eurozone annualized 0.2 percent.
The HICP is calculated according to the European harmonized method so that it can be compared to other Member States of the European Union. The price indices for the eurozone and the European Union are calculated as a whole from the HICPs of individual Member States. The European Central Bank (ECB) uses these figures for monetary policy. According to the ECB, price stability as inflation below but is close to the 2 per cent in the eurozone.
Source: CBS
