Inflation rate rises to 1.0 percent

The inflation rate in the Netherlands according to the consumer price index (CPI) rose to 1.0 percent in December, Statistics Netherlands (CBS) reports, reaching the highest rate since August 2015. In November consumer goods and services were 0.6 percent more expensive than one year previously. The inflation rate over 2016 averaged 0.3 percent, the lowest increase in consumer prices in nearly 30 years.

Inflation (CPI)
Inflation (CPI)
 CPI
2012 Jan2.5
2012 Feb2.5
2012 Mar2.5
2012 Apr2.4
2012 May2.1
2012 Jun2.1
2012 Jul2.3
2012 Aug2.3
2012 Sep2.3
2012 Oct2.9
2012 Nov2.8
2012 Dec2.9
2013 Jan3
2013 Feb3
2013 Mar2.9
2013 Apr2.6
2013 May2.8
2013 Jun2.9
2013 Jul3.1
2013 Aug2.8
2013 Sep2.4
2013 Oct1.6
2013 Nov1.5
2013 Dec1.7
2014 Jan1.4
2014 Feb1.1
2014 Mar0.8
2014 Apr1.2
2014 May0.8
2014 Jun0.9
2014 Jul0.9
2014 Aug1
2014 Sep0.9
2014 Oct1.1
2014 Nov1
2014 Dec0.7
2015 Jan0
2015 Feb0.2
2015 Mar0.4
2015 Apr0.6
2015 May1.1
2015 Jun1
2015 Jul1
2015 Aug0.8
2015 Sep0.6
2015 Oct0.6
2015 Nov0.7
2015 Dec0.7
2016 Jan0.6
2016 Feb0.6
2016 Mar0.6
2016 Apr0
2016 May0
2016 Jun0
2016 Jul-0.2
2016 Aug0.2
2016 Sep0.1
2016 Oct0.4
2016 Nov0.6
2016 Dec1

Higher motor fuel prices drive inflation up

The inflation rate in December was 0.4 percentage point higher than in November, mainly on account of increased motor fuel prices. The consumer price for a litre of petrol at the filling station was 1.55 euros. The price of petrol reached its highest level in more than one and a half years and was 9 eurocents above the level in December 2015. Clothes also became more expensive, contributing to a higher inflation rate.

These upward pressures were offset by price developments in December of mobile phones and package holidays abroad.

Inflation without energy, food, alcohol and tobacco remains the same

Energy and food prices fluctuate strongly and alcohol and tobacco prices are frequently raised as a result of higher excise duties. Therefore, inflation is also measured without taking these product groups into account. According to this criterion the rate was 0.9 percent in December, the same as in November. In October the rate stood at 0.6 percent.

CPI for underlying clusters
CPI for underlying clusters
 Oct 2016Nov 2016Dec 2016
Inflation without energy,
food, alcohol and tobacco
0.60.90.9
Goods0.20.11
Energy-2-3.10.7
Food, alcohol and tobacco0.81.11.5
Goods without energy,
food, alcohol and tobacco
0.50.50.7
Services0.71.11

Dutch as well as eurozone inflation rate rising

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

The HICP-based inflation rate in the Netherlands increased from 0.4 percent in November to 0.7 percent in December. The eurozone inflation rate went up from 0.6 percent to 1.1 percent, keeping the Dutch rate below the eurozone level. The main cause for the rising eurozone inflation rate are the higher energy and food prices.

Inflation (HICP)
Inflation (HICP)
 NetherlandsEurozone
2012 Jan2.92.7
2012 Feb2.92.7
2012 Mar2.92.7
2012 Apr2.82.6
2012 May2.52.4
2012 Jun2.52.4
2012 Jul2.62.4
2012 Aug2.62.6
2012 Sep2.52.6
2012 Oct3.32.5
2012 Nov3.22.2
2012 Dec3.42.2
2013 Jan3.22
2013 Feb3.21.9
2013 Mar3.21.7
2013 Apr2.81.2
2013 May3.11.4
2013 Jun3.21.6
2013 Jul3.11.6
2013 Aug2.81.3
2013 Sep2.41.1
2013 Oct1.30.7
2013 Nov1.20.9
2013 Dec1.40.8
2014 Jan0.80.8
2014 Feb0.40.7
2014 Mar0.10.5
2014 Apr0.60.7
2014 May0.10.5
2014 Jun0.30.5
2014 Jul0.30.4
2014 Aug0.40.4
2014 Sep0.30.3
2014 Oct0.40.4
2014 Nov0.30.3
2014 Dec-0.1-0.2
2015 Jan-0.7-0.6
2015 Feb-0.5-0.3
2015 Mar-0.3-0.1
2015 Apr00
2015 May0.70.3
2015 Jun0.50.2
2015 Jul0.80.2
2015 Aug0.40.1
2015 Sep0.3-0.1
2015 Oct0.40.1
2015 Nov0.40.1
2015 Dec0.50.2
2015 Jan0.20.3
2015 Feb0.3-0.2
2015 Mar0.50
2015 Apr-0.2-0.2
2015 May-0.2-0.1
2015 Jun-0.20.1
2015 Jul-0.60.2
2015 Aug0.10.2
2015 Sep-0.10.4
2015 Oct0.30.5
2015 Nov0.40.6
2015 Dec0.71.1

The Harmonised Index of Consumer Prices (HICP) is compiled according to the European harmonised method in order to facilitate comparison between the various EU member states. Price indices 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. Since rents have increased more than the average price of other goods and services, the CPI-based Dutch inflation rate is currently somewhat higher than the HICP-based inflation rate.

Sources

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