HICP 17.1 percent higher in September

© Hollandse Hoogte / Richard Brocken
According to the European Harmonised Index of Consumer Prices (HICP), inflation stood at 17.1 percent in September, as reported by Statistics Netherlands (CBS). It was 13.7 percent in August. This is an initial estimate, based on as yet incomplete source data. The regular figures, including inflation according to the Dutch Consumer Price Index (CPI), will be published on 6 October.

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.

Harmonised Index of Consumer Prices (HICP) for the Netherlands
YearMonthYear-on-year change (year-on-year % change)
2017January1.6
2017February1.7
2017March0.6
2017April1.4
2017May0.7
2017June1
2017July1.5
2017August1.5
2017September1.4
2017October1.3
2017November1.5
2017December1.2
2018January1.5
2018February1.3
2018March1
2018April1
2018May1.9
2018June1.7
2018July1.9
2018August1.9
2018September1.6
2018October1.9
2018November1.8
2018December1.8
2019January2
2019February2.6
2019March2.9
2019April3
2019May2.3
2019June2.7
2019July2.6
2019August3.1
2019September2.7
2019October2.8
2019November2.6
2019December2.8
2020January1.7
2020February1.3
2020March1.1
2020April1
2020May1.1
2020June1.7
2020July1.6
2020August0.3
2020September1
2020October1.2
2020November0.7
2020December0.9
2021January1.6
2021February1.9
2021March1.9
2021April1.7
2021May2
2021June1.7
2021July1.4
2021August2.7
2021September3
2021October3.7
2021November5.9
2021December6.4
2022January7.6
2022February7.3
2022March11.7
2022April11.2
2022May10.2
2022June9.9
2022July11.6
2022August13.7
2022September17.1

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.

HICP; annual changes in special aggregates
 September 2022 (%)August 2022 (%)
All items17.113.7
Non-energy industrial goods7.25.8
Energy including motor fuels113.888.4
Food, beverages and tobacco10.510.8
Services6.04.6

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.

Sources

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