Inflation rate rises to 2.1 percent in May

Food had an upward effect

Food products were on average 1.5 percent cheaper in May than twelve months previously, but in April food prices were 2.2 percent lower year-on-year. This had an upward effect on inflation. The price development of potatoes and fresh or chilled fruit in 2021 contributed to this in particular.

Fuel prices continue to rise

In May, fuel prices were 19.8 percent higher than one year previously; motor fuels were 18.3 percent more expensive year-on-year in the previous month. Consumers paid an average of 1.773 euros per litre for petrol. This was still 1.482 euros per litre one year previously. The price development of electricity also had an upward effect on inflation in May. Supply rates for electricity have risen.

Increase HICP in the Netherlands and euro area at 2.0 percent

Aside from the consumer price index (CPI), CBS also calculates the European harmonised index of consumer prices (HICP). In May, consumer goods and services in the Netherlands according to the European harmonised consumer price index (HICP) were 2.0 percent more expensive than twelve months previously. This was 1.7 percent in April. Inflation in the euro area rose from 1.6 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 euro area 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.

The main conceptual difference between the CPI and the HICP for the Netherlands is that the HICP, unlike the CPI, 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 May

Due to coronavirus-related government measures, in May many services, e.g. by airlines and events, were either limited or unavailable. As a consequence, there were no transactions for these services that allowed for price measurements. According to Eurostat guideline, CBS has chosen the most appropriate estimation method in each situation. The product groups that required price estimates due to the coronavirus measures account for around 3 percent of consumptive expenditure.

The coronavirus crisis has significantly changed consumers' spending patterns. The change in consumption pattern will affect inflation in 2021.