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 developments of airfares, food and energy had a downward effect
The year-on-year price increase of consumer products in November was lower than in October. This was partly due to the price development of airfares. In November, prices of airfares were down year-on-year, while in October prices were up. In addition, the price increase of food, such as bread, meat and vegetables, was smaller in November compared to October. Price developments of energy also had a downward effect.
Upward effect of petrol
The price development of motor fuels had an upward effect on consumer prices. In November, prices were higher year-on-year, while in October prices were lower. The average litre price of unleaded petrol was 1.66 euros in November, while it was 1.58 euros one year previously.
|Housing, water and |
|Food and non alcoholic|
|Recreation and culture||0.36||0.24|
|Restaurants and hotels||0.23||0.25|
|Miscellaneous goods |
|Clothing and footwear||0.08||0.1|
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 November, HICP-based prices of goods and services in the Netherlands were 2.6 percent up year-on-year, versus 2.8 percent in October. In the eurozone, the price increase went up from 0.7 percent in October to 1.0 percent in November. 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.