Consumer prices 1.2 percent up in February

© HollandseHoogte
Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 1.2 percent higher in February than in the same month last year. In January, prices of consumer goods and services were 1.5 percent up.

The consumer price index (CPI) is an important indicator for inflation, but is not the only one. It is an index for price changes in a basket of consumer goods and services, such as groceries, clothing, petrol, rent and insurance premiums. Inflation is a broader term which covers more than consumer goods and services; for example, prices of owner-occupied houses, manufactured products, shares and gold are also subject to change.

Consumer price index (CPI) (year-on-year % change)
   % change
2013Jan3
Feb3
Mar2.9
Apr2.6
May2.8
Jun2.9
Jul3.1
Aug2.8
Sep2.4
Oct1.6
Nov1.5
Dec1.7
2014Jan1.4
Feb1.1
Mar0.8
Apr1.2
May0.8
Jun0.9
Jul0.9
Aug1
Sep0.9
Oct1.1
Nov1
Dec0.7
2015Jan0
Feb0.2
Mar0.4
Apr0.6
May1.1
Jun1
Jul1
Aug0.8
Sep0.6
Oct0.6
Nov0.7
Dec0.7
2016Jan0.6
Feb0.6
Mar0.6
Apr0
May0
Jun0
Jul-0.2
Aug0.2
Sep0.1
Oct0.4
Nov0.6
Dec1
2017Jan1.7
Feb1.8
Mrt1.1
Apr1.6
May1.1
June1.1
Jul1.3
Aug1.4
Sep1.5
Oct1.3
Nov1.5
Dec1.3
2018Jan1.5
Feb1.2

Lower petrol prices

The year-on-year increase in consumer prices over February was lower than in January. This is mainly due to price developments of petrol. With an average price per litre of 1.57 euros, petrol was 1.1 percent less expensive in February compared to the same month last year, while in January 2018 the price of petrol increased 1.4 percent year-on-year. The price development of clothes and vegetables drove the inflation rate down as well.

CPI; major contributions to year-on-year change (percentage point)
 January 2018February 2018
Total1.501.20
Housing, water and
energy
0.610.61
Miscellaneous goods
and services
0.250.23
Food and non alcoholic
beverages
0.260.20
Recreatie en cultuur0.200.20
Restaurants and hotels0.180.18
Transport0.140.04
Consumption abroad0.040.01
Clothing and footwear-0.05-0.10
Communication-0.25-0.27

Rise in Dutch consumer prices higher than in eurozone

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

HICP-based prices in the Netherlands decreased from 1.5 percent in January to 1.3 percent in February. In the eurozone the price increase of goods and services fell from 1.3 to 1.2 percent. For the second month in a row, the price increase in the Netherlands is higher than in the eurozone.

HICP (year-on-year % change)
   The NetherlandsEurozone
2013Jan3.22
Feb3.21.9
Mar3.21.7
Apr2.81.2
May3.11.4
Jun3.21.6
Jul3.11.6
Aug2.81.3
Sep2.41.1
Oct1.30.7
Nov1.20.9
Dec1.40.8
2014Jan0.80.8
Feb0.40.7
Mar0.10.5
Apr0.60.7
May0.10.5
Jun0.30.5
Jul0.30.4
Aug0.40.4
Sep0.30.3
Oct0.40.4
Nov0.30.3
Dec-0.1-0.2
2015Jan-0.7-0.6
Feb-0.5-0.3
Mar-0.3-0.1
Apr00
May0.70.3
Jun0.50.2
Jul0.80.2
Aug0.40.1
Sep0.3-0.1
Oct0.40.1
Nov0.40.1
Dec0.50.2
2016Jan0.20.3
Feb0.3-0.2
Mar0.50
Apr-0.2-0.2
May-0.2-0.1
Jun-0.20.1
Jul-0.60.2
Aug0.10.2
Sep-0.10.4
Oct0.30.5
Nov0.40.6
Dec0.71.1
2017Jan1.61.8
Feb1.72
Mar0.61.5
Apr1.41.9
May0.71.4
Jun11.3
Jul1.51.3
Aug1.51.5
Sep1.41.5
Oct1.31.4
Nov1.51.5
Dec1.21.4
2018Jan1.51.3
Feb1.31.2

The 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 individual member states. The European Central Bank (ECB) 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.

Sources