Prices frequent purchases increase faster than prices less frequent purchases

Prices of products frequently bought by Dutch consumers have risen twice as fast over the past five years as less frequently bought products. Since July 2006, prices of food products and automotive fuels have risen by an average of 13.3 percent. Prices of less frequently bought products, like consumer electronics, have risen by an average of 7.5 percent.

Price increase in July 2011 relative to July 2006

One third of inflation caused by frequent purchases

As they more often deal with frequent purchases than with less frequent purchases, Dutch consumers tend to think that inflation is higher than it actually is. One third of frequent purchases are food-related. Eating and drinking outdoors and automotive fuels account for 12 percent each.

Frequent purchases by type of purchase

Price increase frequent purchases usually exceeds inflation rate

By the end of 2007, frequent purchases became much more expensive, resulting in price increases above the level of inflation. This was mainly caused by higher prices for food and automotive fuels as a result of price increases on the global market. In the summer of 2008, the gap between price increase and inflation rate rose to nearly 3 percentage points. The price of petrol on an annual basis has again risen more rapidly than inflation since the end of 2009, causing higher prices for frequently purchased articles.

Price developments frequent purchases and inflation

Koen Link