Power costlier regardless of VAT discount
The worth growth of power (electrical energy, gasoline and district heating) brought about inflation to rise additional. In July, power was 108 percent costlier than one yr beforehand. In June, this was 84 percent. As of 1 July 2022, VAT on power has been briefly diminished from 21 percent to 9 percent. This discount shall be in pressure till December 31, 2022.
Power at the moment makes a major contribution to total inflation. The worth growth of power is measured by CBS on the idea of recent contracts. CBS has began analysis on the measurement of power costs within the CPI.
Larger improve in rental property costs
The rental property costs had an upward impact on the inflation price as nicely. Primarily based on provisional figures, rental property costs elevated by 3.0 percent in July 2022 in comparison with the earlier yr. This improve is bigger than in July 2021, when the rise in rental property costs averaged 0.8 percent.
As of 1 July 2022, the utmost improve in rental costs of regulated rental property will rely on earnings degree. For households that fall beneath the low-income threshold, the hire improve is a most of 2.3 percent. For households with a excessive earnings, the hire improve is a most of 100 euros on the month-to-month hire.
The annual hire improve for non-regulated rental property has been capped in 2022, because it was in 2021. The utmost hire improve for 2022 is 3.3 percent, whereas it was 2.4 percent in 2021. On 2 September 2022, CBS will publish the ultimate housing hire growth outcomes together with additional particulars.
Bigger improve in meals costs
Meals costs rose additional in July. Meals was 12.3 percent costlier than one yr beforehand. In June, meals costs had been up by 11.2 percent. That is primarily because of the value growth of cereals, dairy merchandise and sugar and confectionery (together with ice cream). Along with meals, bundle holidays and the prices of banking companies additionally had an upward impact on inflation.
Smaller improve in motor gasoline costs
Nonetheless, the value growth of motor fuels had a downward impact on the inflation price. The worth improve of motor fuels amounted to 25 p.c relative to July 2021. In June, motor fuels had been 35 percent costlier than one yr beforehand. The common value for a litre of petrol on the pump fell from 2.35 euros in June to 2.21 euros in July. The worth of diesel was 2.07 euros in July in opposition to 2.14 euros in June.
|Housing, water and
|Meals and non-alcoholic
|Furnishing and family
|Eating places and motels||0.54||0.48|
|Recreation and tradition||0.37||0.27|
Euro space inflation rises
Since 1996, CBS has revealed two completely different inflation charges: one based mostly on the Shopper Worth Index (CPI) and one based mostly on the Harmonised Index of Shopper Costs (HICP). In response to the European HICP, client items and companies within the Netherlands had been 11.6 percent costlier in July than in the identical month final yr, up from 9.9 percent in June. Inflation within the euro space rose from 8.6 percent in June to eight.9 percent in July.
Distinction between CPI and HICP
With the intention to facilitate comparability between nations, EU member states calculate a client value index in response to internationally agreed definitions and strategies. The European Central Financial institution (ECB) makes use of the HICP to formulate its financial insurance policies within the euro space. As well as, most nations produce their very own nationwide client value index.
The primary conceptual distinction between the CPI and the HICP for the Netherlands is that, in contrast to the CPI, the HICP doesn’t have in mind the prices associated to residence possession. Within the Dutch CPI, these prices are calculated based mostly on developments in rental property costs.
Implications of the coronavirus disaster for client value measurements
As a result of authorities’s COVID-19 countermeasures, a number of companies have been both restricted or unavailable since April 2020. In consequence, there have been no transactions that allowed for value measurements for a number of the companies. In accordance with the Eurostat tips, CBS has opted for probably the most applicable estimation methodology in every state of affairs. In July 2022, costs had been now not estimated in reference to COVID-19, however estimates made in the identical month final yr nonetheless have an effect on this month’s inflation.