Inflation increases to 4.0 percent in November

Inflation is rising mainly due to price changes in motor fuels

Price changes in motor fuels had the greatest upward effect on inflation. Motor fuel prices were 1.5 percent lower in November than one year previously. In October, the year-on-year price decline was 7.0 percent. A litre of petrol cost an average of 1.95 euros in November, compared with 1.90 euros in October. The price of one liter of diesel rose from 1.64 euros in October to 1.72 euros in November. Price changes in airline tickets and clothing also contributed to a higher inflation rate.

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 3.8 percent more expensive in November than one year previously. In October, the inflation rate was 3.3 percent according to the HICP. Inflation in the euro area as a whole was 2.3 percent in November, up from 2.0 percent in October. Inflation in the Netherlands is higher than in the euro area, mainly due to price rises for services and tobacco.

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.