Inflation rate down to 6.2 percent in February

Smaller increase in energy prices

The decrease in inflation was mainly due to the price development of energy (electricity, gas and district heating). In February, energy was 77 percent more expensive than in the same month one year previously. In January, this was 88 percent. In addition to energy, the price development of mobile phones also had a downward effect on inflation.

Energy currently makes a significant contribution to overall inflation. CBS has started research on the measurement of energy prices in the CPI.

Furniture and food more expensive

The price developments of furniture and food, on the other hand, had an upward effect on inflation. Furniture (including upholstery and floor coverings) was 9.7 percent more expensive in February compared to the same month last year. In January, this was 6.7 percent. The year-on-year increase in food prices went up from 4.3 percent in January to 4.9 percent in February.

Euro area inflation continues to rise

Aside from the consumer price index (CPI), CBS also calculates the European harmonised consumer price index (HICP). According to the European HICP, consumer goods and services in the Netherlands were 7.3 percent more expensive in February than in the same month last year, down from 7.6 percent in January. Inflation in the euro area rose from 5.1 percent in January to 5.8 percent in February, according to provisional figures. That is the highest inflation rate ever recorded in the euro area.

The HICP is compiled according to the European harmonised method to facilitate comparison across EU member states. Price indices for the euro area and the European Union as a whole are calculated based on 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, unlike the CPI, the HICP does not take into account the costs of homeownership. In the Dutch CPI, these costs are calculated based on developments in rental property prices.

Implications of the coronavirus crisis for consumer price measurements

Due to the government's COVID-19 countermeasures, several services have been either limited or unavailable since April 2020, such as accommodation and food services. As a result, there were no transactions that allowed for price measurements for some of the services. In accordance with the Eurostat guidelines, CBS has opted for the most appropriate estimation method in each situation.