Low Dutch inflation rate
The Dutch inflation rate is among the lowest of all countries in the European Union (EU). In March 2011, inflation in the EU was 3.1%; in the Netherlands, inflation was 2.0% according to the latest data released by Statistics Netherlands (CBS).
Energy prices
The difference between the Dutch inflation rate and the average EU inflation rate is mainly accounted for by developments in energy prices, according to Statistics Netherlands.
Fiscal measures have less effect on Dutch price developments than on the EU average. Changes in excise rates and other tax measures in the Netherlands accounted for 0.7 percentage points of the price increase while in other EU countries this was more than a percentage point.
Low inflation is good for business
The Netherlands has had one of the lowest rates of inflation in the EU for years. This continues to be beneficial for companies doing business in the Netherlands because a high degree of certainty exists when prices remain stable in countries with low inflation rates. Interest rates on loans are kept low, which in turn reduces the cost of capital.
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