Inflation rate marginally up

05/11/2015 15:00

According to the consumer price index (CPI), Dutch inflation over October was 0.7 percent. In September, consumer prices were 0.6 percent up from one year previously. Petrol and airline ticket prices drove inflation up. According to Statistics Netherlands (CBS), Dutch inflation over the first ten months of 2015 averaged 0.6 percent.

Inflation (CPI)

Petrol price drives inflation up

Petrol price developments have a noticeable effect on inflation. Petrol prices were 11.8 percent down in October 2015 from October last year, but in September the year-on-year price drop was 12.5 percent. In October, the petrol price averaged 1.48 euros per litre. Airline ticket prices also pushed up inflation. In October, airline tickets were 9.7 percent more expensive than in the same month last year. On an annual basis, they remained stable in September 2015.

Inflation excluding energy, food, alcohol and tobacco also slightly higher

Because prices for energy and food products tend to vary considerably and alcohol and tobacco prices often increase as excise duty rates are raised, inflation is also calculated excluding these product groups. According to this criterion, the rate was 1.4 percent in October, versus 1.3 percent in September.

Inflation (CPI) and price developments underlying clusters

Dutch inflation rate above eurozone level

In addition to the consumer price index (CPI), CBS also calculates the European harmonised price index (HICP).

Dutch inflation according to the HICP rose from 0.3 percent in September to 0.4 percent in October and remained far above the average rate across the eurozone. In October, the eurozone rate rose to 0.0 percent.

The HICP is calculated according to the European harmonised method to facilitate comparison between the various EU member states. Price index figures for the eurozone and the European Union as a whole are calculated on the basis of the HICPs of the separate member states. The European Central Bank uses these figures to formulate its monetary policy.

Inflation (HICP)

Unlike the CPI, the HICP does not take into account the costs related to home ownership. In the Dutch CPI, these costs are calculated on the basis of rent levels. Because the rent increase is higher than the average price increase of other goods and services, the CPI-based inflation rate is currently higher than the HICP-based inflation rate.