Price developments package tours keep inflation low
Prices of package tours were more than 8 percent lower in May than one year previously. Turkey, Greece and Egypt in particular were cheap holiday destinations. These price developments kept inflation low, but prices of other goods and services pushed inflation up. On balance, the inflation rates in May and April were stable at 0.0 percent.
Inflation without energy, food, alcohol and tobacco marginally lower
Price developments for energy and food vary strongly and alcohol and tobacco prices are frequently raised as a result of higher excise duty rates. Therefore, inflation is also measured excluding these product groups. According to this criterion, the rate in May fell to 0.5 percent. The rates for April and March were 0.6 and 1.3 percent respectively.
Dutch inflation rate below eurozone level
In addition to the consumer price index (CPI), CBS also compiles the European harmonised price index (HICP).
The Dutch HICP inflation rate was - 0.2 percent in May, the same as in April. The eurozone rate rose from - 0.2 percent in April to - 0.1 percent in May. For the first time since January 2016, the Dutch inflation rate dipped below the Eurozone level.
The HICP is calculated in accordance with the European harmonised method, which facilitates comparison between the member states of the European Union. Price indices for the eurozone and the EU as a whole are calculated on the basis of the HICPs of the individual member states. The European Central Bank (ECB) is using these data 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. However, because the increase in rental prices is higher than the average price increase of other goods and services, the Dutch inflation rate based on the CPI is now marginally higher than the HICP-based rate.