Inflation at 8.0 percent in February according to flash estimate

An inflation rate of 8.0 percent in February 2023 means that prices of consumer products were on average 8.0 percent higher than in February 2022. The 8.0-percent inflation rate is therefore not on top of the 7.6-percent inflation of January.

Price development of product groups

In addition to the CPI inflation rate, CBS also publishes the price development of a number of product groups as part of its flash estimate. Four groups together constitute total CPI expenditure. These include: non-energy industrial goods; energy including motor fuels; food, beverages and tobacco; and services.

New energy price measurement method

As from reporting month June 2023, in which the flash estimate will be published on 30 June, CBS will employ a new method to measure energy prices in the CPI. Under the current method, the price development of energy is measured on the basis of new energy contracts. The new method uses transaction data provided by energy suppliers, so that the tariffs paid under long-standing energy contracts can also be taken into account. This will result in a more accurate inflation rate. Today, CBS publishes an update on its research into the new method of measuring energy prices.

HICP flash estimate

As of 1996, CBS publishes two different inflation rates. One based on the Consumer Price Index (CPI) and one on the Harmonised Index of Consumer Prices (HICP). According to the HICP flash estimate, inflation stood at 8.9 percent in February. This was 8.4 percent in January.

In order to facilitate comparison of inflation rates, the member states of the European Union (EU) also compile a consumer price index according to internationally agreed definitions and methods. Eurostat calculates the inflation rates for the euro area and the European Union based on these harmonised indices from all EU countries. 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.

For the Netherlands, the main difference between the CPI and the HICP is that, unlike the CPI, the HICP does not take into account the costs related to home ownership. In the CPI, these costs are calculated on the basis of rental property prices. However, this is not the only difference. This is further explained in a publication.