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Inflation low since introduction of the euro 10 years ago

Tuesday 10 January 2012

In the 10 years since the euro was introduced in 12 eurozone countries, inflation in the Netherlands has remained low and stable, according to new research by the national statistics office CBS.

Prior to the introduction of the euro, inflation was often higher and fluctuated more strongly, the research shows. Since 2002, inflation has hovered between 0.5% and just over 2% - averaging at 1.9%.

This is ‘practically the first time since World War II that inflation has been below 2% when averaged over 10 years,’ the CBS said.

Between 1992 and 2001, inflation averaged 2.7%.

Average inflation in the eurozone over the first 10 years of the euro was 2.08%, almost in line with European Central Bank targets. Best individual performers were Germany, Finland and the Netherlands.

© DutchNews.nl



 

Readers' Comments

Then how do we explain the hyperinflation which occurred immediately after the introduction of the currency? Pizza went from being 12 guilders to 12 Euros in the restaurants, practically overnight. Many restaurants literally just changed the currency sign on their menu boards. Prices of staple food might have remained relatively low but pls don't claim inflation was low. Nobody I know got a 220% salary raise to compensate for this.

By Michael | 10 January 2012 3:40 PM

Yes, obviously, the researchers have been taking full advantage of The Netherlands liberal attitude towards Cannabis?

By Highlander | 10 January 2012 4:13 PM

So why have prices gone up so much more then this % usually price hikes are ~same as inflation but we have seen price increases between 5 & 11% on many goods and food items. Why is this?

By AndyT | 10 January 2012 5:08 PM

Mostly true except in a few instances, like housing which inflated in value (sorry price not value) substantially more. Of course what goes up quickly comes down just as fast, thus the falling cost of homes recently which now is starting to reflect their true value.
In this recessionary period I expect all other costs to inflate at a much higher rate now though, particularly now that the Dutch have voted away nearly all of the social controls which used to moderate and govern this type of inflation.

By Bill | 11 January 2012 7:04 AM

Inflation is low here with the Euro. You are mistaking commodity price rises as inflation. The Netherlands is a primarily cash economy therefore the managment of money supply is quite easy.

By jd | 11 January 2012 5:52 PM

 
 
 
 
 
 
 
 
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