The rate at which prices are rising in the Netherlands fell further in August compared to a month earlier, Statistics Netherlands (CBS) reported based on a quick initial estimate. Inflation this month was 3.0 percent. In July, it was 4.6 percent. The decrease was mainly due to lower energy and fuel prices. Food prices, on the other hand, did increase, but at a slightly lower rate than in July.

In June, inflation was still 5.7 percent. In that month, CBS used a new method for measuring energy prices in the inflation rate for the first time. It used transaction data from energy suppliers in the new method so that the rates of longer-term energy contracts could also be taken into account. In the old method, the stats office measured the price development only based on new energy contracts.

The decrease was mainly due to the price developments of motor fuels, which fell further. Energy, including motor fuels, became 28.6 percent cheaper after a price drop of 24.4 percent in July. Food prices rose, on the other hand. The average price increase for supermarket products was 10.3 percent this month, compared to 11.6 percent in July.

The prices of industrial goods rose by 6.4 percent, against 6.3 percent a month earlier. Services became 5.4 percent more expensive after a price increase of 5.8 percent a month earlier.

In order to make a good comparison with other European countries, CBS also publishes inflation figures according to the European method, which doesn’t include housing rents, among other things. The inflation then amounted to 3.4 percent, compared to 5.3 percent in July.

Later today, the European statistics agency Eurostat will release inflation figures for the entire eurozone. In July, it was 5.3 percent on an annual basis. In particular, consumer prices for food, alcohol, and tobacco are still rising sharply in the euro area.

Because inflation is still above the target of 2 percent, the European Central Bank (ECB) raised interest rates again in July by a quarter of a percentage point to 3.75 percent. Whether the ECB will raise interest rates further at the next meeting in September depends on the economic data available at that time, according to the central bank.

Reporting by ANP