Consumer prices 1.9 percent up in September

© Hollandse Hoogte / Michael Kooren
Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 1.9 percent higher in September than in the same month last year. In August, prices of consumer goods and services were up by 2.1 percent year-on-year.

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.

Consumer price index (CPI) (year-on-year % change)
jaarmaandchange
2014January1.4
February1.1
March0.8
April1.2
May0.8
June0.9
July0.9
August1
September0.9
October1.1
November1
December0.7
2015January0
February0.2
March0.4
April0.6
May1.1
June1
July1
August0.8
September0.6
October0.6
November0.7
December0.7
2016January0.6
February0.6
March0.6
April0
May0
June0
July-0.2
August0.2
September0.1
October0.4
November0.6
December1
2017January1.7
February1.8
March1.1
April1.6
May1.1
June1.1
July1.3
August1.4
September1.5
October1.3
November1.5
December1.3
2018January1.5
February1.2
March1
April1.1
May1.7
June1.7
July2.1
August2.1
September1.9

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.

CPI: Major contributions to year-on-year change (percentage point)
 SeptemberAugust
Total1.92.1
Housing, water and
energy
0.90.87
Transport0.460.59
Miscellaneous goods
and services
0.250.25
Consumption abroad0.230.21
Restaurants and hotels0.180.18
Alcoholic beverages and
tobacco
0.080.07
Food and non alcoholic
beverages
0.060.05
Health0.040.03

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.

HICP (year-on-year % change)
jaarmaandNetherlandsEuro area
2014January0.80.8
February0.40.7
March0.10.5
April0.60.7
May0.10.5
June0.30.5
July0.30.4
August0.40.4
September0.30.3
October0.40.4
November0.30.3
December-0.1-0.2
2015January-0.7-0.6
February-0.5-0.3
March-0.3-0.1
April00
May0.70.3
June0.50.2
July0.80.2
August0.40.1
September0.3-0.1
October0.40.1
November0.40.1
December0.50.2
2016January0.20.3
February0.3-0.2
March0.50
April-0.2-0.2
May-0.2-0.1
June-0.20.1
July-0.60.2
August0.10.2
September-0.10.4
October0.30.5
November0.40.6
December0.71.1
2017January1.61.8
February1.72
March0.61.5
April1.41.9
May0.71.4
June11.3
July1.51.3
August1.51.5
September1.41.5
October1.31.4
November1.51.5
December1.21.4
2018January1.51.3
February1.31.1
March11.3
April11.3
May1.91.9
June1.72
July1.92.1
August1.92
September1.62.1

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.  

Sources