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.
Increase in fuel prices has slowed down
The increase in the CPI slowed down in November, mainly due to the price development of motor fuels. In November, the consumer price for petrol at the filling station was about the same as one year previously, while in October it was up by 8.1 percent year-on-year. The price development of diesel also had a downward effect on the consumer price index. In November, consumers paid 9 percent more for diesel compared to the same month last year, but in October the price increase was 14.5 percent.
The price development of food, however, had an upward effect on the consumer price index. In November, food prices were on average 1.1 percent higher than in November 2017, while in October the year-on-year increase was 0.5 percent.
|Housing, water and |
|Miscellaneous goods |
|Restaurants and hotels||0.16||0.16|
|Food and non alcoholic|
|Alcoholic beverages and |
|Clothing and footwear||0.08||0.02|
|Recreation and culture||-0.06||0.01|
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 November, HICP-based prices of goods and services in the Netherlands were 1.8 percent up year-on-year, versus 1.9 percent in October. In the eurozone, the price increase slowed down from 2.2 to 2.0 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.