Consumer prices 2.7 percent up in June

© Nikki van Toorn
Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.7 percent higher in June than in the same month last year. In May, prices of consumer goods and services were up by 2.4 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)
YearMonthYear-on-year change
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
2019January2.2
February2.6
March2.8
April2.9
May2.4
June2.7

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.

CPI: Major contributions to year-on-year change (percentage point)
 JuneMay
Total2.72.4
Housing, water and
energy
1.051.09
Food and non alcoholic
beverages
0.510.4
Restaurants and hotels0.30.24
Transport0.260.23
Miscellaneous goods
and services
0.240.19
Recreation and culture0.230.18
Consumption abroad0.140.19
Communications-0.13-0.17

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.

HICP (year-on-year % change)
yearmonthThe NetherlandsEuro 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
April00.2
May0.70.6
June0.50.5
July0.80.5
August0.40.4
September0.30.2
October0.40.4
November0.40.1
December0.50.3
2016January0.20.3
February0.3-0.1
March0.50
April-0.2-0.3
May-0.2-0.1
June-0.20
July-0.60.2
August0.10.2
September-0.10.4
October0.30.5
November0.40.6
December0.71.1
2017January1.61.7
February1.72
March0.61.5
April1.41.9
May0.71.4
June11.3
July1.51.3
August1.51.5
September1.41.6
October1.31.4
November1.51.5
December1.21.3
2018January1.51.3
February1.31.1
March11.4
April11.2
May1.92
June1.72
July1.92.2
August1.92.1
September1.62.1
October1.92.3
November1.81.9
December1.81.5
2019January21.4
February2.61.5
March2.91.4
April31.7
May2.31.2
June2.71.2

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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