Consumer prices 2.7 percent up in December

© CBS / Nikki van Toorn
Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.7 percent higher in December than in the same month one year previously. In November, prices of consumer goods and services were up by 2.6 percent year-on-year. In 2019, consumer prices rose by 2.6 percent on average relative to the previous year, the sharpest increase after 2002

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
December2.7

Increase in motor fuel prices

The year-on-year price increase of consumer products in December was lower than in November. This was mainly due to the price development of motor fuels. In December, the price of petrol at the filling station was 10.2 percent up, while in November it was 4.9 percent up year-on-year. Diesel was 7.1 percent up in December, while in November prices were 0.4 percent lower year-on-year.

The average CPI increase in 2019 was 2.6 percent.

CPI: Major contributions to year-on-year change (percentage point)
 DecemberNovember
All items2.72.6
Housing, water and
energy
0.830.82
Transport0.490.27
Food and non alcoholic
beverages
0.430.49
Recreation and culture0.280.36
Miscellaneous goods
and services
0.270.21
Restaurants and hotels0.260.23
Communication-0.11-0.13

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 December, HICP-based prices of goods and services in the Netherlands were 2.8 percent up year-on-year, versus 2.6 percent in November. In the eurozone, the price increase went up from 1.0 percent in November to 1.3 percent in December. 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
July2.61
August3.11
September2.70.8
October2.80.7
November2.61
December2.81.3

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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