Consumer prices 1.7 percent up in June

The consumer price index (CPI) is an important indicator for inflation, but not the only one. It is an index for price changes in a basket of consumer goods and services, such as groceries, clothing, petrol, rent and insurance premiums. Inflation is a broader term which covers more than consumer goods and services; for example, prices of owner-occupied houses, manufactured products, shares and gold are also subject to change.

Price increase air fares and package holidays abroad lower

The price development of air fares and package holidays abroad drove the inflation rate down. Prices for these services go up during school holidays and holiday periods. This year, May had more public holidays than June. However, the price development of goods and services Dutch people buy abroad drove the inflation rate up. On balance, the price increase of goods and services remained 1.7 percent.

Rise in Dutch consumer prices lower than in eurozone

In addition to the consumer price index (CPI), CBS also calculates the European harmonised price index (HICP).

In June, HICP-based prices of goods and services in the Netherlands were 1.7 percent up year-on-year, versus 1.9 percent in May. In the eurozone, the price increase went up from 1.9 to 2.0 percent.

The HICP is compiled according to the European harmonised method in order to facilitate comparison between the various EU member states. Price indices for the eurozone and the European Union as a whole are calculated on the basis of the HICPs of the individual member states. The European Central Bank (ECB) 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.