Inflation increases to 3.7 percent in July

Higher inflation due to price changes in property rents

The increase in inflation was mainly due to price changes in property rents. Based on provisional figures, rental property prices in July 2024 were on average 5.5 percent higher than one year previously. In July 2023, the average price increase of property rents was 2.0 percent. The price changes in tobacco also had an upward effect on the inflation rate.

Downward effect of motor fuels

The price changes in motor fuels, on the other hand, had a lowering effect on the inflation rate. Motor fuels were 1.5 percent more expensive in July than one year previously. In June, motor fuel prices were 10.2 percent higher year on year.

Inflation increased in the euro area

Since 1996, CBS has published two different inflation rates: one is based on the Consumer Price Index (CPI) and the other is based on the European Harmonised Index of Consumer Prices (HICP). According to the HICP, consumer goods and services in the Netherlands were 3.5 percent more expensive in July. In June, the inflation rate was 3.4 percent according to the HICP. Inflation in the euro area as a whole was 2.6 percent in July, up from 2.5 percent in June.

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.