Inflation rate climbs to 0.4 percent
Higher motor fuel prices drive inflation up
Motor fuel prices had an upward effect on inflation in October. Petrol and diesel have reached the highest price level in more than a year. The consumer price for a litre of petrol at the filling station was 1.52 euros, i.e. 4 euro cents up from October 2015. Package holidays abroad and clothes also became more expensive, thus contributing to a higher inflation.
Inflation without energy, food, alcohol and tobacco also higher
Energy and food prices vary strongly and alcohol and tobacco prices are frequently raised as a result of higher excise duties. Therefore, inflation is also measured without taking these product groups into account. According to this criterion, the rate rose to 0.6 percent in October. In September the rate stood at 0.4 percent.
| Aug 2016 | Sep 2016 | Oct 2016 | |
|---|---|---|---|
| Inflation excl. | 0.8 | 0.4 | 0.6 |
| Goods | -0.4 | -0.3 | 0.2 |
| Energy | -6.2 | -3.8 | -2 |
| Food, alcohol and tobacco | 0.6 | 0.5 | 0.8 |
| Goods, excl. | 1.2 | 0.3 | 0.5 |
| Services | 0.8 | 0.5 | 0.7 |
Excl. = Without energy, food, alcohol and tobacco
Gap between Dutch and eurozone inflation rate narrowing
In addition to the consumer price index (CPI), CBS also publishes the European harmonised price index (HICP).
The HICP-based inflation rate in the Netherlands increased from -0.1 percent in September to +0.3 percent in October. The eurozone inflation rate rose to 0.5 percent, keeping the Dutch rate of inflation below the eurozone level, although the gap is narrowing. Again, energy prices were the main cause for the inflation increase in the eurozone.
The HICP is calculated according to the European harmonised method to facilitate comparison between the various EU member states. Price index figures for the eurozone and the European Union as a whole are calculated on the basis of the HICPs of the separate member states. The European Central Bank uses these figures to formulate its monetary policy.
Unlike the CPI, the HICP does not take into account the costs related to home ownership. In the Dutch CPI, these costs are calculated on the basis of rent levels. Because the rent increase is higher than the average price increase of other goods and services, the CPI-based Dutch inflation rate is currently somewhat higher than the HICP-based inflation rate.
Sources
- StatLine - Consumer prices