Inflation rate June stable at 0 percent

07/07/2016 15:00
Statistics Netherlands (CBS) says inflation according to the consumer price index (CPI) was 0.0 percent in June. On a year-on-year basis, consumer prices for goods and services remained unchanged for the third month in a row. Inflation averaged 0.3 percent over the first six months of 2016.

Inflation (CPI)

Clothes and shoes cheaper than in June 2015

Prices of clothes and shoes fell 1.5 percent relative to June 2015, which had a downward effect on inflation, but prices for holiday trips abroad, motor fuels and mobile phone services drove inflation up. On balance, inflation remained unchanged.

Inflation rate without energy, food, alcohol and tobacco also stable

Price developments for energy and food vary strongly and alcohol and tobacco prices are frequently raised as a result of higher excise duties. Therefore, inflation is also measured excluding these product groups. According to this criterion, the rate in June was 0.5 percent, the same as in May.

Inflation (CPI) and price developments underlying clusters

Excl. =  Without energy, food, alcohol and tobacco

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 June, the same as in May. It remains below the eurozone level. The eurozone rate rose from -0.1 percent in May to 0.1 percent in June. Energy prices mainly account for the increase.

Inflation (HICP)

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.


Sources

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