Inflation fell again slightly in August. This month, prices of consumer goods and services were 3.4 percent higher than a year earlier, according to a quick estimate from the Statistics Netherlands (CBS) based on a European calculation method. In July, prices had risen by 5.3 percent on an annual basis.
Food prices also did not grow as fast as a month earlier. Food and drink was 10.3 percent more expensive in August than twelve months previously, in July the price growth was still 11.6 percent. Energy and motor fuels actually became cheaper. In August, those prices fell by 28.6 percent on an annual basis, in July by 21.4 percent. Statistics Netherlands emphasizes that the estimate is still based on incomplete figures.
These figures are based on the so-called European harmonized consumer price index (HICP). Statistics Netherlands also publishes the consumer price index (CPI) every month. The main difference is that the CPI does not also include the costs of owner-occupied housing in its calculation, but only the price developments of rental housing. In August, the CPI estimate of inflation was 3 percent, also lower than July’s 4.6 percent.
The HICP method has been agreed within the European Union so that member states use the same calculation method. As a result, the inflation figures of the countries can be compared with each other and the European Central Bank can implement effective monetary policy. Later on Thursday morning, the European statistics office Eurostat will publish the European inflation figures.