Dutch inflation rate slips to 0.1 percent

Statistics Netherlands (CBS) reports that the CPI-based inflation rate slipped from 0.2 percent in August to 0.1 percent in September.

Inflation (CPI)

Costs clothes and holiday park accommodations bring inflation down

Price developments of clothes and shoes had a downward effect on inflation in September. Prices were 1.1 percent lower than one year previously. Price developments for holiday park accommodations also had a downward effect on inflation, but motor fuel prices pushed inflation up.

Inflation excluding energy, food, alcohol and tobacco also lower

As prices for energy and food products tend to vary considerably and alcohol and tobacco prices are frequently raised as a result of higher excise duty rates, inflation is also calculated excluding these product groups. According to this criterion, inflation fell to was 0.4 percent in September. The rate for August was 0.8 percent.

Anual rate of change CPI for 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-based inflation rate fell from 0.1 percent in August to -0.1 percent in September. The eurozone rate rose to 0.4 percent, keeping the Dutch rate below the eurozone level. Energy prices in particular contributed to the rise in inflation across the eurozone.

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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