According to the consumer price index (CPI), Dutch inflation over November was 0.7 percent. In the two preceding months, consumer prices were 0.6 percent up from one year previously. Petrol prices drove inflation up, according to Statistics Netherlands (CBS).
Petrol price drives inflation up
Inflation rose mainly due to petrol price developments. Petrol prices were 7.3 percent down in November 2015 from November last year, but in October the year-on-year price drop was 11.8 percent. In November, the petrol price averaged 1.51 euros per litre.
Inflation excluding energy, food, alcohol and tobacco lower
Because prices for energy and food products tend to fluctuate widely 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 inflation rate was 1.2 percent in November, versus 1.4 percent in October.
Dutch inflation rate above eurozone level
In addition to the consumer price index (CPI), Statistics Netherlands also calculates the European harmonised price index (HICP).
Dutch inflation according to the HICP was 0.4 percent in November, just as in October. This is far above the average rate across the eurozone. In November, the eurozone rate rose also remained the same (0.1 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.
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.
Adjustment for October 2015 due to lower rents
The system by which the maximum rental value of regulated rental homes is assessed was amended by the Dutch government with effect from 1 October 2015. This has lent greater impact to the WOZ value of such homes on the rent points system valuation. As of 1 October, the average increase in rents has therefore declined from 2.4 to 2.2 percent. This decrease has pushed the inflation rate in October down from 0.7 to 0.6 percent.