Consumer prices 2.0 percent up in December

© Hollandse Hoogte
Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.0 percent higher in December than in the same month one year previously. In November, prices of consumer goods and services were also up by 2.0 percent year-on-year. The average CPI increase in 2018 was 1.7 percent.

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)
jaarMonthChange
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
October2.1
November2
December2

Air fares cheaper

The increase in the CPI slowed down in December, mainly due to the price development of air fares and motor fuels. However, the price development of clothes and holiday park accommodations had an upward effect on the consumer price index. On balance, consumers paid 2.0 percent more compared to December 2017, the same price increase as in November. The average CPI increase in 2018 was 1.7 percent.

CPI: Major contributors to year-on-year change (percentage point)
 DecemberNovember
Total22
Housing, water and
energy
0.950.96
Accommodation and food services0.230.16
Miscellaneous goods
and services
0.220.26
Consumption abroad0.20.23
Clothing and footwear0.190.08
Food and non-alcoholic
beverages
0.120.11
Transport0.090.31
Alcoholic beverages and
tobacco
0.080.09
Furnishing, household
equipment
0.040.03
Health0.030.04

Rise in Dutch consumer prices higher than in eurozone

In addition to the consumer price index (CPI), CBS also calculates the European harmonised price index (HICP).

In December, HICP-based prices of goods and services in the Netherlands were 1.9 percent up year-on-year, versus 1.8 percent in November. In the eurozone, the price increase slowed down from 1.9 to 1.6 percent.

The increase in the HICP slowed down in the eurozone, mainly due to the price development of energy. In December, prices were up by 5.5 percent and in November by 9.1 percent year-on-year. For the first time after February 2018, the HICP price increase in the eurozone was smaller than in the Netherlands.

HICP (year-on-year % change)
jaarmaandNetherlands Eurozone
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
October1.92.2
November1.81.9
December1.91.6

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

Related items