Consumer prices 2.8 percent up in August

© Hollandse Hoogte / Richard Brocken
Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.8 percent higher in August than in the same month last year. Prices of consumer goods and services were up by 2.5 percent year-on-year in July.

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
July2.5
August2.8

Price increases in clothing and airfares

Price developments of clothing had an upward effect on the consumer price inflation. In August, prices of clothing were higher year-on-year, but in July they were lower than in July of last year. Price developments of airfares and holiday park accommodations also had an upward effect. Prices for these services tend to go up during school holiday and other holiday periods.

CPI: Main contributers to year-on-year change (percentage point)
 AugustJuly
Total2.82.5
Housing, water and
energy
0.940.96
Food and non alcoholic
beverages
0.550.55
Restaurants and hotels0.360.32
Clothing and footwear0.24-0.04
Miscellaneous goods
and services
0.240.24
Transport0.230.26
Recreation and culture0.130.07
Communications-0.15-0.13

Consumer price rise in the Netherlands three times that of eurozone

Aside from the consumer price index (CPI), CBS also calculates the European harmonised index of consumer prices (HICP).

HICP-based prices of goods and services in the Netherlands were 3.1 percent up year-on-year in August, versus 2.6 percent in July. Across the eurozone, the price increase remained unchanged at 1.0 percent in August. The difference between the Dutch and the European inflation rate has not been this large since February 2002. The HICP for the Netherlands has been significantly above the eurozone average due to raising of the low VAT rate and energy taxes in the Netherlands as of January 2019.

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
June2.71.3
July2.51
August3.11

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 developments in rental property prices.

Sources

Related items