Inflation decreases to 3.6 percent in August

Lower inflation due to lower prices for motor fuels and clothing

Inflation fell mainly due to lower prices for motor fuels. Motor fuel prices were 5.6 percent lower in August than in August 2023. In July, fuels were 1.5 percent more expensive than in the same month last year. Lower price for clothing also had a dampening effect on inflation. In August, clothing was 3.5 percent cheaper than in August 2023, while in July it was 2.1 percent more expensive than July 2023.

Inflation decreased 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 3.3 percent more expensive in August. In July, the inflation rate was 3.5 percent according to the HICP. Inflation in the euro area as a whole was 2.2 percent in August, down from 2.6 percent in July. Inflation in the Netherlands is higher than in the euro zone mainly due to price rises for tobacco, accommodation and housing rents.

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.