Consumer price inflation in the Netherlands eased sharply in January and hit its lowest level in more than three-and-half years, data released by the Central Bureau of Statistics revealed Thursday.

Inflation, as per the consumer price index, dropped to 1.4 percent in January from 1.7 percent in December. The January figure was the lowest since June 2010.

Inflation was influenced by a 0.6 percent gain in food and non-alcoholic beverages prices, and a 2.9 percent growth in housing costs and utility prices. Transportation costs advanced 0.5 percent annually, while clothing and footwear prices remained unchanged.

The agency said the harmonized index of consumer prices (HICP), measured under the EU methodology, grew 0.8 percent year-on-year in January.

Separately, the statistical office said turnover in the Dutch retail sector decreased 2.6 percent year-on-year in December, which was notably slower than November's 0.9 percent fall.

The decline was driven mainly by a 4.7 percent fall in sales of non-food items, which was partially offset by a 1.4 percent growth in food and beverages sales. Sales activity at mail order companies and internet shops was higher by 0.2 percent than in December 2012.

RTTNews