Inflation up to 3.2 percent in June

Upward effect of tobacco and clothing

The price of tobacco had an upward effect on inflation. In June, tobacco was 30.9 percent more expensive than in same month last year, while in May the price increase was 22.0 percent. On 1 April 2024, excise duties on tobacco were raised, causing prices to rise. An excise duty increase will have a somewhat delayed effect on sales prices, because retailers still sold stocks of tobacco at old excise duty rates in the first months after the excise duty increase. Prices for clothing also had an upward effect on inflation. Clothing was 1.3 percent more expensive in June than in the previous year, while in May it was 3.9 percent cheaper.

Inflation 2.5 percent in the euro area

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 3.4 percent more expensive in June. In May, the inflation rate was 2.7 percent according to the HICP. Inflation in the euro area as a whole was 2.5 percent in June, down from 2.6 percent in May.

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.