Inflation rate 9.6 percent in April

Smaller increase in energy prices

The price development of energy (electricity, gas and district heating) had a downward effect on the inflation rate. The year-on-year price increase in April was less substantial than in March. In April, energy was 136 percent more expensive than one year previously. In March, this was 157 percent.

Energy currently makes a significant contribution to overall inflation. The price development of energy is measured by CBS on the basis of new contracts. CBS has started research on the measurement of energy prices in the CPI.

Excise duty reduction for motor fuels pushes down inflation

The price development of motor fuels also had a downward effect on the inflation rate. The price increase of motor fuels amounted to 24.8 percent relative to April 2021. In March, motor fuels were 36.5 percent more expensive than one year previously. The excise duty on motor fuels has been reduced by the government for the period from 1 April to 31 December. The average price for a litre of petrol at the pump fell from 2.29 euros in March to 2.09 euros in April. For diesel, the price went down from 2.12 euros in March to 2.00 euros in April.

Food more expensive

The price development of food, however, had an upward effect on inflation. Food was 8.5 percent more expensive in April than one year previously. In March, food prices were up by 6.2 percent. This is mainly due to the price development of meat; the year-on-year price increase went up from 5.5 percent in March to 10.5 percent in April. Vegetables, dairy products and bread and cereals also became more expensive. In addition to food, holiday park accommodations also had an upward effect on the inflation rate.

Euro area inflation rises

Since 1996, CBS has published two different inflation rates: one based on the Consumer Price Index (CPI) and one based on the Harmonised Index of Consumer Prices (HICP). According to the European HICP, consumer goods and services in the Netherlands were 11.2 percent more expensive in April than in the same month last year, down from 11.7 percent in March. Inflation in the euro area rose from 7.4 percent in March to 7.5 percent in April.

Difference between CPI and HICP

In order to facilitate comparison between countries, EU member states calculate a consumer price index according to internationally agreed definitions and methods. The European Central Bank (ECB) uses the HICP to formulate its monetary policies in the euro area. In addition, most countries produce their own national consumer price index.

The main conceptual difference between the CPI and the HICP for the Netherlands is that, unlike the CPI, the HICP does not take into account the costs related to home ownership. In the Dutch CPI, these costs are calculated based on developments in rental property prices.

Implications of the coronavirus crisis for consumer price measurements

Due to the government's COVID-19 countermeasures, several services have been either limited or unavailable since April 2020. As a result, there were no transactions that allowed for price measurements for some of the services. In accordance with the Eurostat guidelines, CBS has opted for the most appropriate estimation method in each situation. In April 2022, prices were no longer estimated in connection with COVID-19, but estimates made in previous months still affect this month's inflation.