Consumer prices 2.1 percent up in October

Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.1 percent higher in October than in the same month last year. In September, prices of consumer goods and services were up by 1.9 percent year-on-year. The increase in the CPI has been close to 2 percent for 4 months now.

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)
jaarmaandchange (year-on-year % change)
2014January1.4
2014February1.1
2014March0.8
2014April1.2
2014May0.8
2014June0.9
2014July0.9
2014August1
2014september0.9
2014October1.1
2014November1
2014December0.7
2015January0
2015February0.2
2015March0.4
2015April0.6
2015May1.1
2015June1
2015July1
2015August0.8
2015september0.6
2015October0.6
2015November0.7
2015December0.7
2016January0.6
2016February0.6
2016March0.6
2016April0
2016May0
2016June0
2016July-0.2
2016August0.2
2016september0.1
2016October0.4
2016November0.6
2016December1
2017January1.7
2017February1.8
2017March1.1
2017April1.6
2017May1.1
2017June1.1
2017July1.3
2017August1.4
2017september1.5
2017October1.3
2017November1.5
2017December1.3
2018January1.5
2018February1.2
2018March1
2018April1.1
2018May1.7
2018June1.7
2018July2.1
2018August2.1
2018September1.9
2018October2.1

Clothing more expensive

The increase in the CPI was higher in October than in September, mainly due to the price development of clothes. In October, prices were 1.1 percent up on October 2017, while in September prices were lower year-on-year. The price development of air fares drove the CPI increase up as well.

CPI: Major contributions to year-on-year change
 October (percentage point)September (percentage point)
Total2.11.9
Housing, water and
energy
0.910.9
Transport0.520.46
Miscellaneous goods
and services
0.250.25
Consumption abroad0.210.23
Restaurants and hotels0.160.18
Alcoholic beverages and
tobacco
0.090.08
Food and non alcoholic
beverages
0.050.06
Health0.040.04
Clothing and footwear0.02-0.14
Communications-0.18-0.12

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 October, HICP-based prices of goods and services in the Netherlands were 1.9 percent up year-on-year, versus 1.6 percent in September. In the eurozone, the price increase went up from 2.1 to 2.2 percent.

HICP
yearmonthNetherlands (year-on-year % change)Euro area (year-on-year % change)
2014January0.80.8
2014February0.40.7
2014March0.10.5
2014April0.60.7
2014May0.10.5
2014June0.30.5
2014July0.30.4
2014August0.40.4
2014september0.30.3
2014October0.40.4
2014November0.30.3
2014December-0.1-0.2
2015January-0.7-0.6
2015February-0.5-0.3
2015March-0.3-0.1
2015April00
2015May0.70.3
2015June0.50.2
2015July0.80.2
2015August0.40.1
2015september0.3-0.1
2015October0.40.1
2015November0.40.1
2015December0.50.2
2016January0.20.3
2016February0.3-0.2
2016March0.50
2016April-0.2-0.2
2016May-0.2-0.1
2016June-0.20.1
2016July-0.60.2
2016August0.10.2
2016september-0.10.4
2016October0.30.5
2016November0.40.6
2016December0.71.1
2017January1.61.8
2017February1.72
2017March0.61.5
2017April1.41.9
2017May0.71.4
2017June11.3
2017July1.51.3
2017August1.51.5
2017september1.41.5
2017October1.31.4
2017November1.51.5
2017December1.21.4
2018January1.51.3
2018February1.31.1
2018March11.3
2018April11.3
2018May1.91.9
2018June1.72
2018July1.92.1
2018August1.92
2018September1.62.1
2018October1.92.2

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

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