Dutch inflation at highest level since 2008

The Dutch inflation rate in July this year rose to 3.1 percent, the highest level since September 2008, according to figures from the Dutch Central Bureau of Statistics (CBS). According to the CBS the current inflation was mainly driven by a sharp growth of rental prices. Housing costs weigh heavily in the inflation rate and social housing corporations were allowed to increase rents by up to 6.5 percent. In July the average rent increase was 4.5 percent, the largest increase since July 1995. From July 1, 2013, the new rent policy took force and the maximum rent increase was equal to inflation of the previous year, increased by a percentage depending on income. The increases in taxes and duties also had an upward effect on the inflation. according to the CBS.