Inflation rate up to 5.2 percent in April

In addition to the overall inflation rate, CBS also calculates monthly average price developments if energy (gas, electricity and district heating) and motor fuel prices are not taken into account. Excluding energy and motor fuels, inflation would have been 7.8 percent, down from 8.1 percent in March.

Inflation is measured each month as the increase in the consumer price index (CPI) relative to the same month in the previous year. The consumer price index shows the price development of a package of goods and services as purchased on average by Dutch households. An inflation rate of 5.2 percent in April 2023 means that consumer product prices were 5.2 percent higher than in April 2022. This means the 5.2-percent inflation in April was not on top of the 4.4-percent inflation in March.

Smaller decrease in energy and petrol prices

The price development of energy and petrol had an upward effect on the inflation rate. In April, energy (electricity, gas and district heating) was 32.2 percent cheaper than one year previously. In March, the year-on-year decrease amounted to 36.5 percent. Petrol was 11.1 percent cheaper in April than twelve months previously. In March, prices were 20.8 percent lower. The effect of the excise duty reduction on motor fuels in April last year does no longer affect inflation from April 2023.

New method of calculating energy prices

As from the reporting month of 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. On 2 March, CBS published an update on its research into the new method of measuring energy prices.

Smaller price increase for food

The price development of food led to a decrease in inflation. Food was 15.9 percent more expensive in April than twelve months previously; in March, this was 18.4 percent. This is mainly due to the price development of meat, vegetables and dairy products.

Euro area inflation rate 7.0 percent

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 5.8 percent more expensive in April than in the same month last year, up from 4.5 percent in March. Inflation in the euro area rose from 6.9 percent in March to 7.0 percent in April.

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. The differences are further explained in the article Differences between consumer price figures.