Consumer price index

The index figure that reflects the price change of a basket of goods and services as purchased on average by households in the Netherlands.

This includes food, durable goods such as household appliances and cars, energy and housing services (rent), and a number of government services. Consumption-related taxes, including motor vehicle tax and municipal taxes such as sewerage charges, are also included in the CPI. Basic health insurance is not included in the CPI, but supplementary health insurance is included.

The CPI is calculated on the basis of household expenditure. Household expenditure can change over time, for example due to the introduction of new products or changes in the composition of the population. Changes in people’s standard of living can also lead to shifts in their purchasing patterns. In order to monitor these changes as accurately as possible, the CPI weighting scheme is adjusted annually.

These purchases are made from net disposable income, meaning gross income minus compulsory payments plus withdrawals from savings. Compulsory payments include direct taxes, social security contributions and basic health insurance. The CPI does take into account price change for government services and consumption-related taxes, such as motor vehicle tax.

In addition to the abovementioned consumer price index for all households, a ‘derived CPI’ is calculated. It is calculated as the regular index excluding the effect of changes in the rates of cost-increasing (or indirect) taxes and consumption-related taxes, taking into account only the direct effect of changes in tax rates.