Inflation 3.5 percent in October

Inflation unchanged in October

Inflation was 3.5 percent in October, the same rate as in September. Prices for motor fuels and energy had an upward effect on inflation. On the other hand, price changes in consumption abroad and in recreation and culture had a dampening effect. On balance, the inflation rate remained unchanged compared to the previous month.

Inflation up in the euro area

CBS publishes 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 October. The October inflation rate is the same as the flash estimate. In September, the inflation rate was also 3.3 percent according to the HICP. Inflation in the euro area as a whole was 2.0 percent in October, up from 1.7 percent in September. Inflation in the Netherlands is higher than in the euro area mainly due to price rises for tobacco and services.

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.