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Differences between HICP and CPI
The HICP (Harmonised Index of Consumer Prices) is a price index calculated according to standardised EU guidelines. The HICP can be used to compare developments in inflation between different countries, and to calculate inflation for the eurozone as a whole. The national CPIs of the various countries are not suitable for this because of differences in composition. The main differences between the Dutch CPI and HICP are:
- The HICP is based on all expenditure on Dutch territory; it thus includes spending by foreign visitors to the Netherlands. The CPI includes only spending by Dutch residents; but it does include spending by Dutch people abroad.
- The CPI also includes consumption-related taxes and public services; these are not included in the HICP.
- Spending on own homes is not included in the HICP, while it is included in the CPI.
- Insurance premiums and spending on childcare are treated differently by the CPI and the HICP.
