Dutch inflation rate higher than other euro area countries

Since October 2012, the Netherlands has been one of the countries with the highest inflation in the Eurozone. Last month, inflation in the Netherlands was at its highest level in the past 10 years. This was announced by Statistics Netherlands (CBS) on Monday. Consumer prices in the Netherlands rose by an average of 3.2 percent in February. This means that in February, people can buy 3.2 percent less for the same amount. The increases in VAT and insurance and energy tax that have been implemented in the past year are the causes of this. This decrease in the value of money is called inflation. On average, inflation has risen by 1.8% in the other euro countries.

Estonia has the highest inflation rate in February, followed by the Netherlands.

This is very remarkable, given that in 2011 the Netherlands was still one of the countries with the lowest inflation, according to Statistics Netherlands.

When VAT went from 19 percent to 21 percent in October 2012, currency depreciation in the Netherlands was much higher  than in the rest of the eurozone. Insurance and energy taxes and excise duties on petrol, tobacco and alcohol have also risen. This also had an impact on inflation in the Netherlands.

The European Central Bank's standards set an inflation target of 2 percent. Here, too, the Netherlands is far above. If inflation is considered over a longer period of time, the Netherlands still meets these standards and inflation is below 2 percent.

Source: www.bullionstreet.com