Consumer price increase lower in March

Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 1.0 percent higher in March than in the same month last year. In February, prices of consumer goods and services were 1.2 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)
   CPI (year-on-year % change)
2013Jan3
2013feb3
2013mrt2.9
2013apr2.6
2013mei2.8
2013jun2.9
2013Jul3.1
2013aug2.8
2013sep2.4
2013okt1.6
2013nov1.5
2013dec1.7
2014Jan1.4
2014feb1.1
2014mrt0.8
2014apr1.2
2014mei0.8
2014jun0.9
2014Jul0.9
2014aug1
2014sep0.9
2014okt1.1
2014nov1
2014dec0.7
2015Jan0
2015feb0.2
2015mrt0.4
2015apr0.6
2015mei1.1
2015jun1
2015Jul1
2015aug0.8
2015sep0.6
2015okt0.6
2015nov0.7
2015dec0.7
2016Jan0.6
2016feb0.6
2016mrt0.6
2016apr0
2016mei0
2016jun0
2016Jul-0.2
2016aug0.2
2016sep0.1
2016okt0.4
2016nov0.6
2016dec1
2017Jan1.7
2017feb1.8
2017mrt1.1
2017apr1.6
2017mei1.1
2017jun1.1
2017Jul1.3
2017aug1.4
2017sep1.5
2017okt1.3
2017nov1.5
2017dec1.3
2018Jan1.5
2018feb1.2
2018mrt1

Price increase clothes less substantial

The year-on-year increase in consumer prices over March was lower than in February. This is mainly due to price developments of a number of food products, such as meat, dairy, fruit and potatoes. The year-on-year price increase of food was lower for the sixth consecutive month. The price development of clothes drove the inflation rate down as well. However, the price development of mobile phone services, maintenance of private cars and petrol increased the inflation rate.

CPI: Major contributions to year-on-year change
 Feb (percentage point)Mar (percentage point)
Total1.21
Housing, water and
energy
0.610.58
Miscellaneous goods
and services
0.230.24
Recreatie en cultuur0.20.17
Restaurants and hotels0.180.16
Transport0.040.14
Food and non alcoholic
beverages
0.20.08
Consumption abroad0.01-0.02
Communication-0.27-0.21
Clothing and footwear-0.1-0.24

Rise in Dutch consumer prices lower 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 1.3 percent in February to 1.0 percent in March. In the eurozone, the price increase of goods and services increased from 1.1 to 1.4 percent. This is mainly due to price developments of food, beverages and tobacco.

HICP
   The Netherlands (year-on-year % change)Eurozone (year-on-year % change)
2013Jan3.22
2013feb3.21.9
2013mrt3.21.7
2013apr2.81.2
2013mei3.11.4
2013jun3.21.6
2013Jul3.11.6
2013aug2.81.3
2013sep2.41.1
2013okt1.30.7
2013nov1.20.9
2013dec1.40.8
2014Jan0.80.8
2014feb0.40.7
2014mrt0.10.5
2014apr0.60.7
2014mei0.10.5
2014jun0.30.5
2014Jul0.30.4
2014aug0.40.4
2014sep0.30.3
2014okt0.40.4
2014nov0.30.3
2014dec-0.1-0.2
2015Jan-0.7-0.6
2015feb-0.5-0.3
2015mrt-0.3-0.1
2015apr00
2015mei0.70.3
2015jun0.50.2
2015Jul0.80.2
2015aug0.40.1
2015sep0.3-0.1
2015okt0.40.1
2015nov0.40.1
2015dec0.50.2
2016Jan0.20.3
2016feb0.3-0.2
2016mrt0.50
2016apr-0.2-0.2
2016mei-0.2-0.1
2016jun-0.20.1
2016Jul-0.60.2
2016aug0.10.2
2016sep-0.10.4
2016okt0.30.5
2016nov0.40.6
2016dec0.71.1
2017Jan1.61.8
2017feb1.72
2017mrt0.61.5
2017apr1.41.9
2017mei0.71.4
2017jun11.3
2017Jul1.51.3
2017aug1.51.5
2017sep1.41.5
2017okt1.31.4
2017nov1.51.5
2017dec1.21.4
2018Jan1.51.3
2018feb1.31.1
2018mrt11.4

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