Dutch inflation twice as high as euro-area inflation
In July inflation in the Netherlands came to 3.1%, almost twice as high as euro-area inflation. Nevertheless, an inflation differential of this size is not exceptional. Figure 1 shows inflation in the Netherlands and the euro area since the start of EMU in 1999. Prices in the Netherlands rose the most and the inflation differential relative to the euro area was the most pronounced at the start of this century. In April and May of 2001 inflation in the Netherlands was as high as 5.5%. In the same year, the inflation differential relative to the euro area repeatedly recorded more than 3 percentage points.
On average prices have risen 2.3% in the Netherlands and 2% in the euro area since the start of EMU. Especially at the start of the monetary union, inflation in the Netherlands was higher, and after that it was often lower than that in the other euro-area countries.