Inflation in the Netherlands was 1.7 percent on average in 2005. This is 0.5 of a percent point higher than in 2004, when consumer prices were 1.2 percent higher than one year previously on average.
The increase was caused by prices of energy products. In December 2005 inflation was 2.0 percent according to Statistics Netherlands consumer price index (CPI).
Inflation according to the European harmonised method (HICP) was 1.5 percent on average in 2005. In 2004 it was 1.4 percent.
Energy prices main factor in inflation in 2005 Consumer prices in the Netherlands were 1.7 percent higher on average in 2005 than in 2004. Just as in 2004, inflation was low from a historical point of view.
The years 2004 and 2005 are the only years since 1990 in which
inflation remained below 2.0 percent. A large part of inflation in 2005 was caused by price increases of energy
products.
Higher prices of gas, electricity and motor fuels contributed 1.0 percent point to the 1.7 percent inflation. Net price increases and decreases of other goods and services accounted for 0.7 of a percent point.
In 2004 on the other hand, only 0.4 of a percent point of inflation was accounted for by energy products and 0.8 of a percent point by other goods and services.
The effect of the supermarket price war diminished in 2005. Food and nonalcoholic drinks were on average 1.2 percent cheaper than one year previously.
In 2004 these products were 3.5 percent cheaper. Crop effects
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