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 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.
|Housing, water and |
|Accommodation and food services||0.23||0.16|
|Miscellaneous goods |
|Clothing and footwear||0.19||0.08|
|Food and non-alcoholic|
|Alcoholic beverages and |
|Furnishing, household |
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.
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.