Inflation rate stable in December

07/01/2016 15:00

According to Statistics Netherlands (CBS), the CPI inflation rates in November and December 2015 were 0.7 percent higher than in the same months in 2014. The rate over the entire year 2015 averaged 0.6 percent.

Inflation (CPI)

Petrol prices force inflation up, clothing prices curb inflation

In December petrol prices had an upward effect on inflation. They were 5.7 percent down from December 2014, but the price decrease in November was 7.5 percent down from the same month last year. In December the petrol price (Euro 95) averaged 1.46 euros per litre, the lowest price level since February 2010.

Airline ticket prices also pushed inflation up in December, but clothing prices had an opposite effect on inflation. On balance, inflation remained unchanged.

Inflation excluding energy, food, alcohol and tobacco higher

As price developments for energy and food products tend to vary considerably and excise duties on alcohol and tobacco products are often raised, inflation is also measured excluding these product groups. Inflation calculated in this manner was 1.3 percent in December, versus 1.2 percent in November.

Inflation (CPI) and price developments underlying clusters

Inflation over 2015 averages 0.6 percent

Today, CBS is also publishing the average inflation rate over 2015, which stands at 0.6 percent. With the exception of 1986 and 1987, the average consumer price increase in 2015 was the lowest in the past half century.

Inflation rate in Netherlands higher than in the eurozone

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

Dutch inflation according to the HICP was 0.5 percent in December, marginally higher than in November, when the rate was 0.4 percent. The Dutch inflation rate is again higher than in the eurozone. In December, the eurozone rate remained stable at 0.2 percent.

Inflation (HICP)

HICP is calculated according to the European harmonised method to facilitate comparison between the Netherlands and the other member states of the European Union. Price index figures for the eurozone and the European Union as a whole are based on the HICPs of the separate member states. These figures are used by the European Central Bank 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.