Inflation down to 2.8 percent in February

Changes in food prices had a dampening effect

Food prices had a dampening effect on the inflation rate. Food products were 0.3 percent more expensive in February year on year. This was 2.1 percent in January. The lower price increase was mainly due to price changes in bread and cereal products, vegetables and meat.

Furnishing prices lower

Price changes in residential products such as furnishings and household items also had a dampening effect on inflation. Prices for these items were on average 2.7 percent lower in February relative to one year previously. In January the year-on-year price decline was 0.5 percent. The greater price drop of this product group was mainly due to price changes in household furniture and non-electric kitchen items (such as pans).

Motor fuels more expensive

On the other hand, price changes in motor fuels had an upward effect on the inflation rate. In February, motor fuels were 8.6 percent more expensive relative to one year previously. In January, prices were 4.3 percent higher than the previous year. A liter of Euro 95 cost an average of 1.97 euros in February, while in January it was 1.91 euros. The price of a liter of diesel rose from 1.74 euros in January to 1.81 euros in February.

New method to measure energy prices

Since June 2023, CBS has been using a new method to measure energy prices and incorporate them into the CPI. On 30 June, CBS published a background article explaining in more detail what this switch means for the CPI, the inflation rate and the use of the CPI for indexation purposes.

Inflation in the euro area down

Since 1996, CBS has published two different inflation rates: one based on the Consumer Price Index (CPI) and one based on the European Harmonised Index of Consumer Prices (HICP). According to the HICP, consumer goods and services in the Netherlands were 2.7 percent more expensive in February than in the same month last year. In January, the inflation rate was 3.1 percent according to the HICP. Inflation in the euro area as a whole fell from 2.8 percent in January to 2.6 in February.

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 for the euro area. In addition, most countries produce a national consumer price index.

For the Netherlands, the main difference between the CPI and the HICP is that the HICP does not take account of costs related to home ownership while the CPI does. In the Dutch CPI, these costs are calculated based on changes to rental property prices. These differences are explained in greater detail in the article Differences between consumer price figures.