Netherlands - Consumer Price Index (CPI)

The Consumer price index (CPI) all households, calculated by Statistics Netherlands, measures the average price changes of goods and services purchased by households.

The index is an important criterion for inflation, frequently used by trade and industry, employers' organisations, trade unions and government. The index is for instance, used to make adjustments to wages, tax tables and index-linked rent increases, annuities, etc. This table contains figures about the price developments of a package of goods and services purchased by the average Dutch household, also known as the consumer price index (CPI). The table also includes the derived consumer price index: this price index excludes the effect of changes in the rates of product-related taxes (e.g. VAT and excise duty on alcohol and tobacco) and subsidies and consumption-related taxes (e.g. motor vehicle tax).

The second table is the harmonised consumer price index (HICP). The harmonised consumer price index (HICP) has been developed with the sole purpose of creating a standard to compare the inflation rates in the various EU countries.

Approximately 250 interviewers of Statistics Netherlands visit a range of shops throughout the country and record over 65 thousand prices of 1,400 different articles. Items and collection method are constantly fine-tuned to agree with recent social developments. Price data are collected during three weeks every month. The change in the level of house rent, an important component of the CPI, is measured annually. Part of the prices are collected by means of written and telephone surveys and, if possible, through the Internet. Statistics Netherlands uses scanner data to monitor price changes in supermarkets. These data files contain information on the amount of goods sold and turnover of all supermarkets and are used to calculate average prices.

Each month, Statistics Netherlands publishes data on the inflation rate in the Netherlands. The inflation rate is an indication of the price increase or decrease of a basket of goods and services purchased by an average Dutch household in one year. The basket is based on the spending pattern of an average household. Inflation is measured as the year-on-year change of the CPI, expressed as a percentage. Statistics Netherlands regularly adjusts the contents of the basket, if the goods and services no longer accurately reflect the spending pattern of the average Dutch household. Each month, Statistics Netherlands measures the prices of the goods and services in the basket. It contains day to day shopping items, spending on durable consumer goods, such as washing machines and cars, rent, school and tuition fees and consumer-related taxes such as road tax. Since 2007, supplementary health insurance premiums are also included in the CPI. The compulsory basic health insurance is not included in the CPI. Other expenses not included in the CPI are income tax and social premiums, which are also compulsory and therefore are not part of the consumers' free disposable income.

The term reference year is used to refer to the price level of the year which was taken as the basis for the calculations. In the years to come the reference year will be 2015, which implies that prices will be compared to 2015. This is indicated by "2015 = 100".

In addition to the (normal) consumer price index, two other versions are calculated and published. The first one is the so-called derived CPI, which takes into account tax rate changes. The derived consumer price index is equal to the CPI, without the effect of changes in the rates of product-related taxes (for instance VAT and excise duty on alcohol and tobacco) and subsidies. The derived CPI answers the question how prices change, if tax rates remain the same. Derived index figures are frequently used by the government and in wage negotiations.

The figures are provisional when first published. Their status becomes final simultaneously with the second publication about the same month. Disparities between provisional and final figures are caused by new or updated source material that has become available after the first publication.

In 2016 the following revisions took place in the HICP and CPI:

• The reference years 2005=100 for the HICP and 2006=100 for the CPI are now set at 2015=100
• The classification of consumption expenditures COICOP-HICP will be replaced by the more detailed ECOICOP
• The actual classification of consumer expenditures in the PCI will be replaced by a new one, which equals ECOICOP to the extent possible

For more information on the new methodology, please click here.

For more information visit: http://statline.cbs.nl/Statweb/publication/?VW=T&DM=SLEN&PA=83131eng&D1=0&D2=0-1,71,86,104,136,180,196,231,243,307,311,320,359,363&D3=a&HD=160302-1503&LA=EN&HDR=T,G1&STB=G2 and click the "i" on the left side.