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.
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.
|Housing, water and |
|Food and non alcoholic|
|Restaurants and hotels||0.36||0.32|
|Clothing and footwear||0.24||-0.04|
|Miscellaneous goods |
|Recreation and culture||0.13||0.07|
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.
|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 developments in rental property prices.