Consumer prices 2.7 percent up in October

Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.7 percent higher in October than in the same month last year. In September, prices of consumer goods and services were up by 2.6 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
July2.5
August2.8
September2.6
October2.7

Increase in airfares

The year-on-year price increase of consumer products in October was higher than in September. This was partly due to the price development of airfares. The price increase of airfares in October was higher than in September. In addition, the price development of mobile phones had an upward effect. However, price developments of clothing and energy had a downward effect.

CPI: Major contributions to year-on-year change (percentage point)
 OctoberSeptember
Total2.72.6
Housing, water and
energy
0.880.92
Food and non alcoholic
beverages
0.550.55
Transport0.310.22
Restaurants and hotels0.250.24
Miscellaneous goods
and services
0.250.22
Recreation and culture0.240.21
Clothing and footwear0.10.19
Communications-0.1-0.17

Consumer price rise in the Netherlands higher than in eurozone

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

In October, HICP-based prices of goods and services in the Netherlands were 2.8 percent up year-on-year, versus 2.7 percent in September. In the eurozone, the price increase went down from 0.8 percent in September to 0.7 percent in October. 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
September2.70.8
October2.80.7

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

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