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Dutch CPB lowers '09 inflation forecast -newspaper

Published 11/29/2008, 11:40 AM
Updated 11/29/2008, 11:42 AM
TLGNc
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AMSTERDAM, Nov 29 (Reuters) - Inflation in the Netherlands in 2009 is forecast to be lower than previously expected, according to figures from government macro-economic think tank CPB, seen by Dutch daily De Telegraaf.

Inflation is now seen at 2.25 percent in 2009, based on the figures, compared with a 3.25 percent forecast provided by CPB when the Netherlands published its 2009 budget in September, the paper reported on Saturday.

The CPB figures see the purchasing power of consumers increasing by 1 percent in 2009, compared with a previous forecast in September of 0.5 percent, the paper reported.

Dutch Finance Minister Wouter Bos confirmed to the paper that the purchasing power of Dutch consumers would be higher than previously expected, as energy costs were set to decline.

"The small increase will be a bigger increase," Bos told it in an interview.

""Although people will still experience high energy costs in the first few months of the year, they will turn lower thereafter," Bos told the paper. (Reporting by Catherine Hornby, editing by Anthony Barker)

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