Consumer prices 2.2 percent up in January

Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.2 percent higher in January 2019 than in the same month last year. This is the largest price increase after September 2013. In December, prices of consumer goods and services were up by 2.0 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
October2.1
November2.0
December2.0
2019January2.2

Raised consumer tax rates 

On 1 January 2019, the low VAT rate was raised from 6 to 9 percent; 22.5 percent of all consumer goods and services qualify for this rate. The VAT rate change put upward pressure on prices of food, books and public transport, for example. On average, food prices were up by 3.3 percent year-on-year in January against 1.2 percent in the previous month. The price development of food had an upward effect on the consumer price index.

Consumer prices were pushed further upwards by the increased tax rates on and supply costs of gas and electricity. Energy prices were up by 17.4 percent year-on-year. In January versus 13.5 percent in December.

Cheaper home care

The price development of home care services had a downward effect on the consumer price index, partly due to lowering of the home care subscription fees. Furthermore, the price development of airline tickets and holiday park accommodations put downward pressure on the CPI in January.

CPI: Major contributions to year-on-year change (percentage point)
 JanuaryDecember
Totaal2.22
Housing, water and
energy
1.140.95
Food and non alcoholic
beverages
0.350.12
Restaurants and hotels0.20.23
Miscellaneous goods
and services
0.170.22
Clothing and footwear0.150.19
Consumption abroad0.140.2
Alcoholic beverages and
tobacco
0.080.08
Furnishing, household
equipment
0.060.04
Health0.050.03

European harmonised consumer price index 2.0 percent up

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

In January, HICP-based prices of goods and services in the Netherlands were 2.0 percent up year-on-year. The figure for December has been adjusted from 1.9 to 1.8 percent. In the eurozone, the price increase was 1.4 percent in January

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
October1.92.2
November1.81.9
December1.81.6
2019January21.4

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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