The consumer price index (CPI) is an important indicator for inflation, but 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.
Air fares cheaper
The increase in the CPI was lower in September than in August, mainly due to the price development of air fares. In September, prices were 5 percent down on September 2017, while in August prices were 11 percent higher year-on-year. The price development of petrol drove the inflation rate down as well.
|Housing, water and |
|Miscellaneous goods |
|Restaurants and hotels||0.18||0.18|
|Alcoholic beverages and |
|Food and non alcoholic|
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).
In September, HICP-based prices of goods and services in the Netherlands were 1.6 percent up year-on-year, versus 1.9 percent in August. In the eurozone, the price increase went up from 2.0 to 2.1 percent.
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.
Adjustment of August inflation rate
The year-on-year increase in both the CPI and HICP in August has been adjusted downwards: the CPI from 2.3 to 2.1 percent and the HICP from 2.1 to 1.9 percent. The inflation rate has been revised because additional information about the prices of clothes became available.