Netherlands Inflation


Netherlands: Inflation remains stable in October

November 4, 2010

In October, consumer prices added 0.1% over the previous month. The reading came in below the 0.6% increase registered in September but was in line with market expectations. The main drivers behind the modest monthly increase included higher food and transport prices. Annual inflation remained unchanged from the 1.6% September reading and has been relatively stable over the last four months. On the other hand, annual average inflation increased from 1.1% in September to 1.2%. Annual average harmonised inflation, based on the harmonised index of consumer prices (HICP), rose from 0.7% in September to 0.8% in October According to the quarterly report from June, the Central Bank expects harmonised inflation to average 1.0% this year before accelerating to 1.5% next year. Consensus Forecast panellists anticipate inflation to average 1.0% this year, which is unchanged from last month's forecast. For 2011, the panel expects inflation to reach 1.4%.


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