Inflation rises for third month in a row

08/05/2015 15:00

According to the most recent figures from Statistics Netherlands, Dutch inflation in terms of the consumer price index (CPI) rose to 0.6 percent in April. In March it was still only 0.4 percent. Since February, inflation has risen by 0.2 of a percent point per month.

Inflation in terms of the European harmonised price index (HICP), which is used for the European Central Bank’s monetary policy, rose to 0.0 percent in April. This is 0.3 of a percent point up on March, when it was still negative.

Inflation

Prices of phones and food push up inflation

More expensive mobile phones were the main cause of the rise in inflation in April. More of the newest versions were sold, which were priced higher than earlier models. Food prices also contributed to the higher inflation: although food prices were lower than twelve months previously on average, the year-on-year decrease was significantly smaller than in March.

Inflation excluding energy, food, alcohol and tobacco rises to 1.1 percent

As prices of energy and food are subject to large fluctuations, and prices of alcohol and tobacco often rise as a result of tax measures, inflation is also measured excluding these categories. Inflation without these product groups rose by 0.1 of a percent point in April, to 1.1 percent. This is half a percent point higher than inflation according to the CPI.

Inflation

Inflation (CPI) and price changes in underlying groups

Inflation in the Netherlands and eurozone rises to 0.0 percent

The HICP is calculated in accordance with the European harmonised method so that it can be compared with other member states of the European Union. The price indices for the eurozone and the EU as a whole are calculated from the HICPs of the individual member states.

Dutch inflation according to the HICP rose to 0.0 percent in April and is at the same level as the average in the eurozone. In March Dutch inflation according to the HICP was -0.3 percent, in the eurozone it was -0.1 percent.

Unlike the CPI, the HICP does not take into account the costs of living in an own home. In the Dutch CPI these costs are calculated on the basis of rent levels. As rent increases were quite large last year, inflation in terms of the HICP is lower at present than inflation calculated according to the Dutch national method.