Consumer prices 2.6 percent up in November

© Hollandse Hoogte / Patricia Rehe
Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.6 percent higher in November than in the same month last year. In October, prices of consumer goods and services were up by 2.7 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
November2.6

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.

CPI: Major contributions to year-on-year change (percentage point)
 NovemberOctober
All items2.62.7
Housing, water and
energy
0.820.88
Food and non alcoholic
beverages
0.490.55
Recreation and culture0.360.24
Transport0.270.31
Restaurants and hotels0.230.25
Miscellaneous goods
and services
0.210.25
Clothing and footwear0.080.1
Communication-0.13-0.1

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.

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
November2.61

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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