Inflation rate up to 5.7 percent in December

With the December figure being known, the inflation rate for the entire year can also be provided. On average, consumer prices were 2.7 percent higher in 2021 than in the previous year.

Higher energy prices

The rise in inflation was mainly due to higher energy prices (electricity, gas and district heating). The variable supply rates of electricity and gas increased further in December. Energy was 74.9 percent more expensive than in the same month one year previously. In November, the year-on-year price increase was 57.4 percent.

Food also more expensive

The price development of food also had an upward effect on inflation. Food was 2.6 percent more expensive in December than one year previously. In November, food prices were up by 1.1 percent. This is mainly due to the price development of meat, vegetables and fruit.

Motor fuels and holiday park accommodations brought down inflation

The price developments of motor fuels and holiday park accommodations had a downward effect on the inflation rate. The price increase of motor fuels amounted to 27.8 percent relative to December 2020. In November, motor fuels were 33.1 percent more expensive than one year previously. A stay in a bungalow park cost 7.1 percent less in December than in the previous year, while in November the price increased by 4.6 percent. The lower average price level in December 2021 is due to the fact that the Christmas holidays started later in 2021 than in 2020.

Inflation in the Netherlands higher than in the euro area

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 6.4 percent more expensive in December than in the same month one year previously, up from 5.9 percent in November. Inflation in the euro area rose from 4.9 percent in November to 5.0 percent in December, according to provisional figures. The difference between the HICP of the Netherlands and the euro area has widened further.

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 cinema visit. As a result, there were no transactions for some of 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 product groups that required price estimates as a result of the coronavirus measures accounted for less than 1 percent of consumer spending in December.

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