Persistently low inflation across the globe
Inflation in the euro area, including in the Netherlands, is at a low ebb and is expected to stay that way for some time to come. Not only is low inflation being seen in the euro area, but also in other parts of the world, including the United States, the United Kingdom, Sweden, Switzerland, and Japan. The low level of inflation is largely attributable to global factors. World prices of food and energy have fallen sharply in the past months. Due to these lower prices, the contribution of food and energy to inflation has been a meagre 0.1 percentage points since mid-2013. Since the start of EMU in 1999 until mid-2013, the average contribution had been 1.0 percentage points.
Chart 1: Euro-area inflation statistics
Contribution to HICP-inflation in percentages