HICP 17.1 percent higher in September

The 17.1-percent inflation rate in September 2022 means that prices of consumer products were 17.1 percent up on September 2021; this is not on top of the 13.7 percent inflation in August.

Price developments in special aggregates

In its initial estimate (also known as flash estimate), CBS includes price developments in so-called special aggregates. Four special aggregates together make up total domestic consumption expenditure according to the HICP: non-energy industrial goods; energy including motor fuels; food, beverages and tobacco; and services.

Study on energy prices progressing

Energy currently makes a significant contribution to overall inflation. The price development of energy is measured by CBS on the basis of new energy contracts. CBS has launched research into a new method to measure and calculate the energy prices as part of the HICP and CPI. With this method, current developments in energy prices will be presented in a more refined manner. To do so, CBS uses data provided by energy companies. CBS released an update on the study in mid-September.

So far, the first, preliminary calculations have been carried out. These show that with the new method, the inflation rate is significantly lower than what is currently published. At the moment, it is difficult to indicate exactly how much discrepancy exists between the old and the new method. CBS will use the period ahead to validate and check the results of these calculations.

HICP and CPI

CBS has been publishing two different inflation rates since 1996: One based on the Consumer Price Index (CPI) and one based on the Harmonised Index of Consumer Prices (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 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 on the basis of rental property prices. However, this is not the only difference. The differences are further explained in a publication.