Inflation rate 8.6 percent in June

Less substantial increase in energy prices

In June, the year-on-year price increase of energy (electricity, gas and district heating) was less substantial than in May. This resulted in lower inflation. In June, energy was 84 percent more expensive than one year previously. In May, this was 105 percent. In addition to energy, the price development of clothing also had a downward effect on the inflation rate.

Energy currently makes a significant contribution to overall inflation. The price development of energy is measured by CBS on the basis of new contracts. CBS has started research on the measurement of energy prices in the CPI.

Larger increase in food prices

Food prices rose further in June. Food was 11.2 percent more expensive than one year previously. In May, food prices were up by 9.1 percent. This is mainly due to the price development of dairy products and meat. Most other products, including cereals, oils and fats, vegetables, fish and fruit, also became more expensive. Food has become more expensive every month since October 2021.

Motor fuels more expensive

The price development of motor fuels had an upward effect on the inflation rate as well. The price increase of motor fuels amounted to 34.8 percent relative to June 2021. In May, motor fuels were 27.3 percent more expensive than one year previously. The average price for a litre of petrol at the pump rose from 2.19 euros in May to 2.35 euros in June. The price of diesel was 2.14 euros in June against 1.99 euros in May. The average prices of petrol and diesel have never been as high as in June.

Euro area inflation continues to rise

Since 1996, CBS has published two different inflation rates: one based on the Consumer Price Index (CPI) and one based on the Harmonised Index of Consumer Prices (HICP). According to the European HICP, consumer goods and services in the Netherlands were 9.9 percent more expensive in June than in the same month last year, down from 10.2 percent in May. Inflation in the euro area rose from 8.1 percent in May to 8.6 percent in June.

Difference between CPI and HICP

In order to facilitate comparison between countries, EU member states calculate a consumer price index according to internationally agreed definitions and methods. The European Central Bank (ECB) uses the HICP to formulate its monetary policies in the euro area. In addition, most countries produce their own national consumer price index.

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 related to home ownership. 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. 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. In June 2022, prices were no longer estimated in connection with COVID-19, but estimates made in the same month last year still affect this month's inflation.