Netherlands: Inflation accelerates in December
January 6, 2011
In December, consumer prices fell 0.2% over the previous month after declining 0.1% in November. The main drivers behind the decline were falling prices for clothing and footwear, as well as for alcoholic beverages and tobacco. Despite the price drop, annual inflation stepped up to 1.9% in December (November: +1.6%), representing the highest inflation rate since March 2009. Similarly, annual average inflation inched up to 1.3% in December (November: +1.2%). Annual average HICP inflation, based on the harmonised index of consumer prices, increased a notch in December to 0.9% but remained below the Central Bank's forecast for 2010, which had seen HICP inflation averaging 1.0%. The Central Bank expects HICP inflation to average 1.6% in 2011 and 1.5% in 2012.