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Inflation rises to 1.1 percent in September

Price hike clothes

The price development of clothing had an upward effect on inflation. Clothing was 0.1 percent more expensive in September than twelve months previously. In August prices were still 4.5 percent lower than in the same month last year. Summer sales continued longer in August than last year, so prices were lower on average. This year, the autumn collections were mainly introduced in September.

Inflation in Europe remains negative

In addition to the consumer price index (CPI), Statistics Netherlands also calculates the European harmonized consumer price index (HICP). According to the HICP, consumer goods and services in the Netherlands were 1.0 percent more expensive in September than a year earlier, compared to 0.3 percent in August. According to provisional figures, inflation in the eurozone fell from -0.2 percent in August to -0.3 percent in September. The difference between the HICP of the Netherlands and the eurozone has thus increased this month. Inflation in the Netherlands has been higher than inflation in the eurozone every month since December 2018.

The HICP is calculated according to the European harmonized method so that it can be compared with other Member States of the European Union. The price indices for the euro area and the European Union as a whole are calculated from the HICPs of the individual Member States. The European Central Bank (ECB) uses these figures for monetary policy. In contrast to the CPI, the HICP does not take into account the costs of living in one’s own home. In the CPI, these costs are calculated on the basis of the development of housing rents.

Pricing dashboard

The consumer price index is one of the most important price indicators included in the price dashboard. This also includes other indicators such as the price index of existing owner-occupied homes and the import and export prices of the industry.

Due to government measures, some services were not available or were limited in September, such as air travel and participation in events. As a result, for some of these services there were no transactions for which the prices could be measured. Following the guidelines of Eurostat, the statistical office of the European Union, Statistics Netherlands has chosen the most appropriate estimation method for each situation. The article groups within which prices had to be estimated in connection with corona together make up about 3 percent of consumer spending. All choices are explained in a memorandum and a separate table indicates per article group whether an estimate has been made.

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