Inflation rate rises to 1.7 percent in January

© HollandseHoogte
Statistics Netherlands (CBS) reports that the consumer price index (CPI) rose noticeably to 1.7 percent in January, reaching the highest level since the end of 2013. In December consumer goods and services were 1.0 percent more expensive than one year previously.

It is rare for inflation to rise so rapidly. Over the past 15 years, it only occurred once.

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
2017 Jan1.7
2017 Feb
2017 Mrt

Higher motor fuel prices drive inflation up

Motor fuel prices pushed up inflation in January. The consumer price for a litre of petrol at the filling station was 1.57 euros, i.e. 14 eurocents more than in January 2016. The average price of diesel fuel was 1.25 euros, 20 eurocents above the level in January 2016. The price of electricity also contributed to inflation. Levies were raised by 33.7 percent, whereas one year ago they declined by 55.6 percent.

Airline ticket prices and prices for holiday park accommodations were also up from January 2016. Last year’s Christmas holiday ended on 2 January, whereas this year’s Christmas holiday continued into the first week of January. As prices tend to be higher during holiday periods, there were more days with high prices in January 2017. This also had an upward effect on inflation.

Increase inflation excluding energy, food, alcohol and tobacco

Energy and food prices vary significantly 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 was 1.4 percent in January, versus 0.9 percent in December.

CPI for underlying clusters
CPI for underlying clusters
 Nov 2016Dec 2016Jan 2017
Inflation without energy,
food, alcohol and tobacco
0.90.91.4
Goods0.111.8
Energy-3.10.74.7
Food, alcohol and tobacco1.11.51.5
Goods without energy,
food, alcohol and tobacco
0.50.71
Services1.111.4

Inflation rate up in the Netherlands and the eurozone

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

The HICP-based rate of inflation in the Netherlands increased from 0.7 percent in December to 1.6 percent in January. The eurozone rate went up from 1.1 percent to 1.8 percent over the same period. Hence, the gap between the Dutch rate and the eurozone rate is narrowing. Higher energy and food prices are the main cause for the higher inflation rate in the eurozone.

 

Inflation (HICP)
Inflation (HICP)
 The NetherlandsEuro area
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
2016 Jan0.20.3
2016 Feb0.3-0.2
2016 Mar0.50
2016 Apr-0.2-0.2
2016 May-0.2-0.1
2016 Jun-0.20.1
2016 Jul-0.60.2
2016 Aug0.10.2
2016 Sep-0.10.4
2016 Oct0.30.5
2016 Nov0.40.6
2016 Dec0.71.1
17 Jan1.61.8
17 Feb
17 Mar

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 (ECB) uses these figures to formulate its monetary policy. According to the ECB, prices are stable, if the inflation rate is close to 2 percent.

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.

Sources

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