Inflation up to 3.2 percent in January; 3.5 percent excluding energy

The CPI also indicates the price change relative to the previous month. Consumer prices rose by 0.5 percent in January 2024 relative to December 2023.

The inflation rate excluding energy and motor fuels was 3.5 percent in January versus 3.4 percent in December. The difference between inflation and inflation excluding energy was smaller in January than it was in December.

Smaller drop in energy prices

The increase in inflation was mainly due to changes in the price of energy (gas, electricity and district heating). In January, energy was 9.2 percent cheaper than in January last year, but in December prices were 42.1 percent lower than in the same month one year earlier. The much smaller price drop in January 2024 can be attributed to the fact that in January 2023 energy prices fell sharply compared to December 2022 due to the introduction of the price cap on energy.

Since June 2023, CBS has been using a new method to measure energy prices and incorporate them into the CPI. On 30 June, CBS published a background article explaining in more detail what this switch means for the CPI, the inflation rate and the use of the CPI for indexation purposes.

Changes in food prices had a dampening effect

Food prices had a dampening effect on the inflation rate. Although food was 2.1 percent more expensive in January than it was one year previously, this was 4.1 percent in December. The lower price increase was mainly the result of prices for bread and cereal products and vegetables.

Price changes in the short term

The CPI not only provides an insight into price changes relative to one year previously (inflation) but also changes relative to the previous month. Prices for consumers rose by 0.5 percent in January relative to December 2023.

It should be noted that when comparing prices with the previous month, seasonal influences must be taken into account. For example, airline tickets are more expensive during holiday months than outside the holiday season. These higher prices are temporary rather than structural, however. Month-on-month changes are often more volatile than year-on-year changes as a result of seasonal factors like this.

Inflation in the euro area down

Since 1996, CBS has published two different inflation rates: one based on the Consumer Price Index (CPI) and one based on the European Harmonised Index of Consumer Prices (HICP). According to the HICP, consumer goods and services in the Netherlands were 3.1 percent more expensive in January than in the same month last year. In December, the inflation rate was 1.0 percent according to the HICP. Inflation in the euro area as a whole fell from 2.9 percent in December to 2.8 in January.

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 for the euro area. In addition, most countries produce a national consumer price index.

For the Netherlands, the main difference between the CPI and the HICP is that the HICP does not take account of costs related to home ownership while the CPI does. In the Dutch CPI, these costs are calculated based on changes to rental property prices. These differences are explained in greater detail in the article Differences between consumer price figures.