Inflation rate up to 1.0 percent in December

Price development of motor fuels and holiday park accommodations push up inflation rate 

In December, the price development of motor fuels and holiday park accommodations had an upward effect on inflation. Fuel prices were 7.4 percent lower year-on-year, but in November the price decrease was 8.9 percent. Prices of holiday park accommodations went up on an annual basis from 5.4 percent in November to 10.6 percent in December. On the other hand, the price development of clothing had a downward effect on inflation.

Inflation in eurozone remains negative

Aside from the consumer price index (CPI), CBS also calculates the European harmonised index of consumer prices (HICP).

In December, HICP-based prices of goods and services in the Netherlands were 0.9 percent up year-on-year, versus 0.7 percent in November. The inflation rate in the eurozone remained at -0.3 percent, as in the previous three months.

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 developments in rental property prices.

Implications of the coronavirus crisis for consumer price measurements in December

Due to coronavirus-related government measures, in December the full extent of services by e.g. airlines and restaurants was limited or unavailable. As a consequence, there were no transactions for many of these services for which prices could be measured. In line with guidelines from Eurostat, the statistical office of the European Union, CBS chose the most appropriate estimation method for each situation. The product groups within which prices had to be estimated due to coronavirus measures account for around 10 percent of consumptive expenditure. All choices are explained in a note and in a table is indicated per product group if an estimate had to be made.