Inflation rose sharply again in September. The price of goods and services was 14.5 percent higher last month than a year earlier. This is evident from Thursday’s publication Numbers of the Central Bureau of Statistics. It is the highest inflation ever measured by CBS, which has been tracking the figure since 1963. In August inflation was still 12.0 percent.
The price development of energy (electricity, gas and district heating) is the biggest driver of the inflation record. Energy was 200 percent more expensive in September than a year earlier. In August it was still 151 percent. CBS is therefore investigating a new method for measuring energy prices within the CPI. In order to properly measure the effect of energy, Statistics Netherlands also calculates the monthly inflation figure without the effect of energy. That amounts to 6.5 percent in September, compared to 6.0 percent in August. The government has released 23.5 billion euros to ease the energy burden of households by setting a price ceiling from 1 January 2023.
Statistics Netherlands measures inflation every month on the basis of the price development of a package consisting of the goods and services that an average Dutch household purchases each year. The price increase of those goods, also called the consumer price index (CPI), is calculated every month compared to the same month in the previous year. The price development of energy is measured by Statistics Netherlands on the basis of newly concluded contracts. This means that actual inflation is probably lower, because households with a permanent contract or people who have yet to conclude their variable contract are not included in the calculation. CBS is therefore investigating a new method for measuring energy prices within the CPI.
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Petrol price rises less fast
Not only did energy prices go up, food, clothing and education also became more expensive last month. However, the price increase of gasoline decreased. In August, petrol was 12.9 percent more expensive than a year earlier, in September it fell to 6.7 percent. The price increase for a stay in a holiday park also decreased from 5.7 percent in August to 1.0 percent in September.
Statistics Netherlands uses two different methods to calculate inflation. In addition to the consumer price index, which was used in this case, the institute also publishes the HICP monthly. This is the so-called harmonized European method, with which the inflation rates of the Member States of the European Union can be compared. The biggest difference with the consumer price index is that the HICP only takes into account rents, not the costs of living in a house for sale. In September, the HICP stood at 17.1 percent. Eurozone inflation was 10.0 percent last month.