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.
Airline tickets more expensive
The year-on-year increase in the CPI was higher in April than in March, mainly due to the price development of airline tickets and holiday park accommodations. Prices for these services go up during school holidays and holiday periods. In 2018, the Easter weekend fell in the last week of March and in 2019 in mid-April.
Consumer prices were pushed further upwards by the price development of motor fuel as well. In April, the price of petrol at the filling station was 6.0 percent up, while in March it was 5.0 percent up year-on-year. The average litre price of unleaded petrol was 1.70 euros in April. The price development of clothing, on the other hand, had a downward effect on the consumer price index.
|Housing, water and |
|Food and non alcoholic|
|Restaurants and hotels||0.31||0.25|
|Miscellaneous goods |
|Recreation and culture||0.16||0.15|
|Clothing and footwear||-0.13||0.1|
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 April, HICP-based prices of goods and services in the Netherlands were 3.0 percent up year-on-year versus 2.9 percent in March. It is the highest increase since August 2013 and one of the highest in the eurozone. In the eurozone, the price increase went up from 1.4 to 1.7 percent. The difference between the price increase in the Netherlands and in the eurozone has grown significantly since January, when the low VAT rate and energy taxes were raised in the Netherlands.
|year||month||The Netherlands||Euro area|
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.