Inflation rate up to 2.4 percent in August

© Hollandse Hoogte / Robin Utrecht
Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.4 percent higher in August than in the same month last year. The inflation rate stood at 1.4 percent in July. The price developments of package holidays abroad and holiday park accommodations contributed to the higher inflation in particular.

Consumer price index (CPI)
YearMonthYear-on-year change (year-on-year % change)
2015January0
2015February0.2
2015March0.4
2015April0.6
2015May1.1
2015June1
2015July1
2015August0.8
2015September0.6
2015October0.6
2015November0.7
2015December0.7
2016January0.6
2016February0.6
2016March0.6
2016April0
2016May0
2016June0
2016July-0.2
2016August0.2
2016September0.1
2016October0.4
2016November0.6
2016December1
2017January1.7
2017February1.8
2017March1.1
2017April1.6
2017May1.1
2017June1.1
2017July1.3
2017August1.4
2017September1.5
2017October1.3
2017November1.5
2017December1.3
2018January1.5
2018February1.2
2018March1
2018April1.1
2018May1.7
2018June1.7
2018July2.1
2018August2.1
2018September1.9
2018October2.1
2018November2
2018December2
2019January2.2
2019February2.6
2019March2.8
2019April2.9
2019May2.4
2019June2.7
2019July2.5
2019August2.8
2019September2.6
2019October2.7
2019November2.6
2019December2.7
2020January1.8
2020February1.6
2020March1.4
2020April1.2
2020May1.2
2020June1.6
2020July1.7
2020August0.7
2020September1.1
2020October1.2
2020November0.8
2020December1
2021January1.6
2021February1.8
2021March1.9
2021April1.9
2021May2.1
2021June2
2021July1.4
2021August2.4

Holiday prices up

Inflation was higher in August than in July. This is partly due to the price development of holidays. Package deals for holidays abroad were 16.4 percent more expensive in August than one year previously, while they were 4.4 percent cheaper in July year-on-year. This is mainly because the price level of package holidays was relatively low in August 2020. A stay in a holiday park cost 12.0 percent more in August than in the same month last year. In July, holiday park accommodations were still 6.3 percent cheaper year-on-year. In August, prices were at the highest level ever recorded.

Higher inflation also due to price developments of food

The developments in prices of food products also drove up inflation. Food products were 0.2 percent more expensive in August, but 0.9 percent cheaper in July year-on-year. This is mainly due to the price development of potatoes, fruit and meat.

CPI: Major contributions to year-on-year change
 August (percentage point)July (percentage point)
All items2.41.4
Housing, water and
energy
0.750.7
Transport0.630.33
Miscellaneous goods
and services
0.270.26
Furnishing and household
equipment
0.20.14
Consumption abroad0.130.07
Restaurants and hotels0.12-0.04
Alcoholic beverages and
tobacco
0.070.06
Clothing and footwear0.070.04
Recreation and culture0.06-0.16
Consumption related taxes0.030.03
Food and non-alcoholic
beverages
0.03-0.09

Increase HICP in the euro area 3.0 percent

Aside from the consumer price index (CPI), CBS also calculates the European harmonised consumer price index (HICP). According to the European HICP, consumer goods and services in the Netherlands were 2.7 percent more expensive in August than in the same month last year, up from 1.4 percent in July. Inflation in the euro area rose from 2.2 to 3.0 percent.

Harmonised Index of Consumer Prices (HICP)
yearmonthThe Netherlands (year-on-year % change)Euro area (year-on-year % change)
2015January-0.7-0.6
2015February-0.5-0.3
2015March-0.3-0.1
2015April00.2
2015May0.70.6
2015June0.50.5
2015July0.80.5
2015August0.40.4
2015September0.30.2
2015October0.40.4
2015November0.40.1
2015December0.50.3
2016January0.20.3
2016February0.3-0.1
2016March0.50
2016April-0.2-0.3
2016May-0.2-0.1
2016June-0.20
2016July-0.60.2
2016August0.10.2
2016September-0.10.4
2016October0.30.5
2016November0.40.6
2016December0.71.1
2017January1.61.7
2017February1.72
2017March0.61.5
2017April1.41.9
2017May0.71.4
2017June11.3
2017July1.51.3
2017August1.51.5
2017September1.41.6
2017October1.31.4
2017November1.51.5
2017December1.21.3
2018January1.51.3
2018February1.31.1
2018March11.4
2018April11.2
2018May1.92
2018June1.72
2018July1.92.2
2018August1.92.1
2018September1.62.1
2018October1.92.3
2018November1.81.9
2018December1.81.5
2019January21.4
2019February2.61.5
2019March2.91.4
2019April31.7
2019May2.31.2
2019June2.71.3
2019July2.61
2019August3.11
2019September2.70.8
2019October2.80.7
2019November2.61
2019December2.81.3
2020January1.71.4
2020February1.31.2
2020March1.10.7
2020April10.3
2020May1.10.1
2020June1.70.3
2020July1.60.4
2020August0.3-0.2
2020September1-0.3
2020October1.2-0.3
2020November0.7-0.3
2020December0.9-0.3
2021January1.60.9
2021February1.90.9
2021March1.91.3
2021April1.71.6
2021May22
2021June1.71.9
2021July1.42.2
2021August2.73

The HICP is compiled according to the European harmonised method to facilitate comparison across EU member states. Price indices for the euro area and the European Union as a whole are calculated based on the HICPs of the individual member states. The European Central Bank (ECB) uses these figures to formulate its monetary policy.

The main conceptual difference between the CPI and the HICP for the Netherlands is that, unlike the CPI, the HICP does not take into account the costs of homeownership. In the Dutch CPI, these costs are calculated based on developments in rental property prices.

Implications of the coronavirus crisis for consumer price measurements

Due to the government's COVID-19 countermeasures, some services have been either limited or unavailable since April 2020, such as a visit to festivals in August. As a result, there were no transactions for these services that allowed for price measurements. In accordance with the Eurostat guidelines, CBS opted for the most appropriate estimation method in each situation.

The coronavirus pandemic has significantly changed consumers’ spending patterns. The change in consumption patterns will affect inflation in 2021.