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 higher
The year-on-year increase in the CPI was higher in June than in May, mainly due to the price development of air fares. Prices go up during school holidays and holiday periods. Because there were more public holidays in June 2019 than in June 2018, prices were higher on average.
Highest price increase for food in over 10 years
The price development of food also had an upward effect on the consumer price index. In June, food prices were on average 4.8 percent higher year-on-year, the highest increase in over 10 years. In May, the price increase was 3.8 percent year-on-year. Vegetables had a great effect on this development: prices in June were 9.4 percent higher, while in May they were up by 6.3 percent year-on-year.
|Housing, water and |
|Food and non alcoholic|
|Restaurants and hotels||0.3||0.24|
|Miscellaneous goods |
|Recreation and culture||0.23||0.18|
Rise in consumer prices unchanged in eurozone
In addition to the consumer price index (CPI), CBS also calculates the European harmonised price index (HICP).
In June, HICP-based prices of goods and services in the Netherlands were 2.7 percent up year-on-year versus 2.3 percent in May. In the eurozone, the price increase remained the same at 1.2 percent. Since January the HICP in the Netherlands has been significantly higher than in the eurozone. In January 2019, 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.