Inflation rate up to 8.0 percent in February

In addition to the overall inflation rate, CBS also calculates monthly average price developments if energy (gas, electricity and district heating) and motor fuel prices are not taken into account. Excluding energy and motor fuels, inflation would have increased from 7.7 percent in January to 8.1 percent in February.

Inflation is measured each month as the increase in the consumer price index (CPI) relative to the same month in the previous year. The consumer price index shows the price development of a package of goods and services as purchased on average by Dutch households. An inflation rate of 8.0 percent in February 2023 means that consumer product prices were 8.0 percent higher than in February 2022. This means the 8.0-percent inflation in February was not on top of the 7.6-percent inflation in January.

Clothing and food more expensive

The price developments of clothing and food led to an increase in inflation. Clothing was 11.8 percent more expensive in February than one year previously. In January, the year-on-year price increase was 9.4 percent. Food was 18.4 percent more expensive in February than twelve months previously; in January, this was 17.6 percent. This is mainly due to the price development of fresh vegetables. In addition, price developments of visits to restaurants and cafés (including takeaway meals) and those of energy also had an upward effect on inflation.

Motor fuels cheaper

The price development of motor fuels, on the other hand, had a downward effect on the development of inflation. Motor fuels were 9.4 percent cheaper in February than twelve months previously. Prices were 5.6 percent lower in January.

New method of calculating energy prices

As from the reporting month of June 2023, in which the flash estimate will be published on 30 June, CBS will employ a new method to measure energy prices in the CPI. Under the current method, the price development of energy is measured on the basis of new energy contracts. The new method uses transaction data provided by energy suppliers, so that the tariffs paid under long-standing energy contracts can also be taken into account. This will result in a more accurate inflation rate. On 2 March, CBS published an update on its research into the new method of measuring energy prices.

Euro area inflation rate slightly down

Since 1996, CBS has published two different inflation rates: one based on the Consumer Price Index (CPI) and one based on the Harmonised Index of Consumer Prices (HICP). According to the European HICP, consumer goods and services in the Netherlands were 8.9 percent more expensive in February than in the same month last year, up from 8.4 percent in January. Inflation in the euro area fell from 8.6 percent in January to 8.5 percent in February.

Difference between CPI and HICP

In order to facilitate comparison between countries, EU member states calculate a consumer price index according to internationally agreed definitions and methods. The European Central Bank (ECB) uses the HICP to formulate its monetary policies in the euro area. In addition, most countries produce their own national consumer price index.

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 related to home ownership. In the Dutch CPI, these costs are calculated based on developments in rental property prices. The differences are further explained in the article Differences between consumer price figures.