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The Netherlands: Highest increase consumer prices in almost 5 years

Staff Writer |
Statistics Netherlands (CBS) reports that the consumer price index (CPI) was 2.1 percent higher in July than in the same month last year.

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In June, prices of consumer goods and services were up by 1.7 percent year-on-year. For the first time after September 2013, the price increase was above 2 percent.

The consumer price index (CPI) is an important indicator for inflation, but not the only one.

It is an index for price changes in a basket of consumer goods and services, such as groceries, clothing, petrol, rent and insurance premiums.

Inflation is a broader term which covers more than consumer goods and services; for example, prices of owner-occupied houses, manufactured products, shares and gold are also subject to change.

Mainly due to the price development of house rents, the inflation rate was higher than in June.

Dutch house rents are annually raised in July. The average residential rent increase was 2.3 percent in July 2018, versus 1.6 percent in July 2017. Price developments of natural gas and electricity also had an upward effect on consumer prices.

In addition to the consumer price index (CPI), CBS also calculates the European harmonised price index (HICP).

In July, HICP-based prices of goods and services in the Netherlands were 1.9 percent up year-on-year, versus 1.7 percent in June. In the eurozone, the price increase went up from 2.0 to 2.1 percent.

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