Harmonised Index of Consumer Prices (HICP)

Harmonised index of consumer prices - September 2020

Consumer prices
Harmonised index of consumer prices - September 2020
  • Belgium's inflation rate based on the European harmonised index of consumer prices (HICP) was running at 0.5 % in September, compared to -0.9 % in August. Core inflation (inflation without energy and unprocessed food) stands at 1.5 % in September.
  • The inflation rate based on the consumer price index (CPI) for September stood at 0.9 % compared to 0.8 % in August.
  • The sub-indices with the largest upward effect on inflation were restaurants and cafés, housing rent, fruit, meat and the purchase of passenger vehicles.
  • However, the sub-indices with the largest downward effect on inflation this month were domestic heating oil, motor fuels, gas, electricity and pharmaceutical products.
  • The harmonised index of consumer prices of September for the EU Member States will be published by Eurostat on 16 October.

hicp

Inflation based on the European harmonised index of consumer prices (HICP)[1] was running at 0.5 % in September, compared to -0.9 % in August. The inflation rate based on the harmonised index of consumer prices at constant tax rates (HICP-CT)[2] was running at 0.9 % in September, compared to -0.5 % in August.

Inflation and effect on inflation for the 12 main groups

Based on the breakdown into 12 main groups, the highest inflation rate in September was measured for "food and non-alcoholic beverages" (3.5 %). The lowest inflation rate was measured for “Housing, water and energy” (-4.0 %).

The main group with the largest upward effect on inflation in September was "food and non-alcoholic beverages" with an effect of 0.6 percentage point. The largest downward effect on inflation was measured for “Housing, water and energy” (-0.8 percentage point).

Inflation[3] and effect[4] on inflation for the overall HICP and 12 main groups

Product group Weight (‰) Inflation on annual basis (%) Effect on inflation (percentage point)
HICP HICP-CT
Jul/20 Aug/20 Sep/20 Sep/20 Jul/20 Aug/20 Sep/20
0 Total expenditure 1.000.0 1.7 -0.9 0.5 0.9      
1 Food and non-alcoholic beverages 165.0 3.3 3.2 3.5 3.5 0.3 0.8 0.6
2 Alcoholic beverages and tobacco 49.7 1.8 2.3 1.9 1.9 0.0 0.2 0.1
3 Clothing and footwear 53.2 25.6 -21.1 0.4 0.4 1.1 -1.3 0.0
4 Housing, water and energy 162.8 -3.8 -3.5 -4.0 -4.0 -1.0 -0.5 -0.8
5 Interior decoration and household appliances 74.1 2.6 0.4 1.3 1.3 0.1 0.1 0.1
6 Health 81.5 -0.4 -0.3 -0.3 -0.3 -0.2 0.1 -0.1
7 Transport 123.6 -1.2 -1.0 -1.0 -1.0 -0.4 0.0 -0.2
8 Communication 32.9 0.2 -0.2 -0.1 -0.1 0.0 0.0 0.0
9 Recreation and culture 87.8 2.1 1.0 1.4 1.4 0.0 0.2 0.1
10 Education 5.0 1.5 1.5 1.5 1.5 0.0 0.0 0.0
11 Hotels, cafés and restaurants 80.7 2.7 2.9 2.7 7.7 0.1 0.4 0.2
12 Various goods and services 83.7 1.5 1.6 1.6 1.6 0.0 0.2 0.1

Inflation according to specific aggregates

The overall HICP can be broken down into five specific aggregates which together form the total expenditure.

  • Inflation for energy products decreased compared to the previous month. It was running at -11.9 % in September compared to -10.6 % in August and -11.2 % in July. Prices decreased on average by 1.1 % compared to the previous month. The average inflation rate of this aggregate for the last twelve months is -10.1 %.
  • Inflation for processed food products decreased compared to the previous month. It was running at 2.1 % in September compared to 2.4 % in August and 1.9 % in July.  Prices decreased by 0.6 % on average compared to August.
  • Inflation for unprocessed food (fruit, vegetables, meat and fish) is on the rise. It was running at 7.2 % in September compared to 5.4 % in August and 7.3 % in July. Prices increased on average by 0.3 % compared to August. The average inflation rate of this aggregate for the last twelve months is 3.4 %.
  • Inflation for non-energy industrial goods was running at 0.8 % in September compared to -4.6 % in August and 5.5 % in July. Prices increased on average by 5.6 % compared to August.
  • Inflation for services (including rents) amounted to 1.8 % in September compared to 1.7 % in July and August. Prices decreased by -1.1 % on average compared to the previous month.

Core inflation (inflation without energy and unprocessed food) was running at 1.5 % in September, registering an increase compared to the inflation rate of -0.1 % measured in August. Average core inflation over the last 12 months amounts to 1.5 %. Prices of this subaggregate increased by 1.0 % compared to the previous month.

Inflation according to specific aggregates

Specific aggregates Weight (‰) Inflation on annual basis (%) 12-month average (%) Monthly change
Jul/20 Aug/20 Sep/20 Sep/20 Sep/20
Total expenditure 1000.0 1.7 -0.9 0.5 0.5 0.8
Fuels and energy sources 97.4 -11.2 -10.6 -11.9 -10.1 -1.1
Processed food products 171.5 1.9 2.4 2.1 2.1 -0.6
Unprocessed food 43.2 7.3 5.4 7.2 3.4 0.3
Non-energy industrial goods 267.2 5.5 -4.6 0.8 0.8 5.6
Services 420.8 1.7 1.7 1.8 1.8 -1.1
HICP without energy and unprocessed food (core inflation) 859.4 2.9 -0.1 1.5 1.5 1.0

Effect of sub-indices on inflation

The largest upward effect on inflation was caused by restaurants, cafés and similar services (0.20 percentage point). Housing rent provided an upward effect of 0.16 percentage point. Fruit had an impact of 0.12 percentage point and meat an impact of 0.11 percentage point. Finally, the purchase of passenger vehicles provided a contribution of 0.09 percentage point.

Sub-indices with the largest upward effect on inflation

Sub-index Weight (‰) Effect on inflation (percentage point)
2020 Sep/20
11.1.1 Restaurants, cafés and similar services 69.9 0.20
04.1.0 Housing rent 71.1 0.16
01.1.6 Fruit 10.8 0.12
01.1.2 Meat 40.6 0.11
07.1.1 Purchase of passenger vehicles 38.5 0.09

The largest downward effect on inflation came from domestic heating oil (-0.45 percentage point). Motor fuels provided an effect of -0.31 percentage point. Gas and electricity had a downward effect of -0.23 and -0.22 percentage point respectively. Finally, pharmaceutical products had a negative impact of -0.08 percentage point.

Sub-indices with the largest downward effect on inflation

Sub-index Weight (‰) Effect on inflation (percentage point)
2020 Sep/20
04.5.3 Domestic heating oil 12.2 -0.45
07.2.2 Motor fuels 33.7 -0.31
04.5.2 Gas 16.1 -0.23
04.5.1 Electricity 32.4 -0.22
06.1.1 Pharmaceutical products 14.5 -0.08

Comparison with neighbouring countries

Since the final HICP of the neighbouring countries will not be published until later, comparisons can only be made based on the first HICP flash estimate for September.

In September, inflation in Belgium was running at 0.5 %, up from the -0.9 % registered in August. The Netherlands registered an inflation rate of 1.0 % in September; an increase compared to an inflation rate of 0.3 % in August. In September, inflation in France amounted to 0.0 %, a decrease compared to an inflation rate of 0.2 % in August. In September, inflation in Germany was running at -0.4 %, down from a rate of -0.1 % in August.

hicp

Since the HICP at constant tax rates for September are not yet published by Eurostat, August is the most recent month to use as a basis for comparison. Belgium's inflation rate based on the HICP-CT stood at -0.5 % in August, down from a rate of 2.1 % in July. Germany's inflation rate stood at 2.0 % in August, down from 2.1 % in July. In France, this inflation rate amounted to 0.0 % in August, down from a rate of 0.7 % in July. This inflation in the Netherlands in August amounted to 0.3 %, down from 1.6 % in July.

 

hicp

 


[1] In addition to the national consumer price index (CPI), Statbel also calculates a European harmonised consumer price index (Harmonised Index of Consumer Prices, HICP). The HICP is used to compare inflation rates in the EU Member States. To this end, the applied expenditure approach and methods have been coordinated as much as possible and laid down in European regulations. The results of the CPI and HICP are not the same. This is mainly due to a different weighting and composition of the basket of goods and services on which these indices are based.

The HICP is also used by the European Central Bank in its monetary policy. Additionally, the HICP is used to determine to what extent a Member State meets the inflation criteria set in the Treaty on European Union.

Differences between the HICP and the current CPI are:

  • The weighting of the basket of goods and services in the HICP is mainly based on the national accounts. At lower detailed levels the Household Budget Survey is used. The CPI mostly uses the Household Budget Survey at all levels.
  • The reference population of the HICP consists of private households (including tourists in Belgium) and institutional households (e.g. retirement homes and nursing homes). In the CPI, this population currently consists of private households with a reference person under a maximum age.
  • The HICP uses the concept of domestic expenditure: expenditure in Belgium by the reference population. The CPI uses the concept of national expenditure: expenditure by the reference population irrespective of the location.
  • Seasonal adjustment is not applied in the HICP, but is applied in the CPI to travels abroad and stays in holiday villages.
  • Sales periods in the CPI are systematically spread over 6 months, but are included in the same month in the HICP.
  • Current prices for domestic heating oil are used in the HICP calculation. A weighted 12-month average is applied in the CPI calculation.

[2]The HICP-CT is calculated in the same way as the regular HICP, but the prices in this index are calculated based on constant tax rates. This index therefore reflects the theoretically potential effect of changes in indirect tax rates (such as VAT or excise duties) on measured inflation. However, this is a theoretical effect, since it presupposes that tax changes are immediately and entirely reflected in prices paid by consumers.

[3]Inflation on annual basis measures the price changes between the current month and the same month of the year before. A 12-month average compares the average HICP of the last 12 months with the average of the previous 12 months. A monthly change compares the price levels of the last two months.

[4] The effect on inflation shows the changes on the inflation rate by including the sub-index in the HICP. The effect not only takes the weight of the sub-index into account, but it also takes into account whether the sub-index inflation is higher or lower than that of the total expenditure (overall HICP).

Table 1
Content

Inflation calculated based on harmonised index of consumer prices by group of products and services, last 12 months

be.STAT logoAccess to latest statistics

Graph
Content
Table 2
Table 3
Content

Inflation measured through harmonised index of consumer prices by specified aggregates, last 12 months

be.STAT logoAccess to latest statistics

Table 4

Doel en korte beschrijving

De geharmoniseerde consumptieprijsindex (HICP) is een economische indicator die als doel heeft de prijsevolutie van goederen en diensten, gekocht door huishoudens, doorheen de tijd te meten. De HICP maakt dan ook een vergelijkbare meting van inflatie mogelijk in de eurozone, de EU, de Europese Economische Ruimte en voor alle andere landen inclusief kandidaat Lidstaten voor de Europese Unie. De HICP wordt berekend op een geharmoniseerde wijze en op basis van gemeenschappelijke concepten. De HICP is de officiële maatstaf van de inflatie in de eurozone om de Europese Centrale Bank in staat te stellen haar monetair beleid te voeren.

Populatie

Uiteindelijke gezinsuitgaven van gezinnen die op Belgisch grondgebied wonen.

Frequentie

Maandelijks.

Timing publicatie

Resultaten beschikbaar 15 dagen na de referentieperiode

Definities

Geharmoniseerde prijsindex (GICP) : Het geharmoniseerde indexcijfer van de consumptieprijzen (GICP) werd in 1997 opgericht om over een vergelijkbare meting van de inflatie tussen de deelnemende landen uit de toekomstige eurozone te beschikken. Sinds het begin van de euro is het GICP één van de belangrijkste meetinstrumenten van de Europese Centrale Bank (ECB) bij het voeren van haar monetaire beleid. De opgenomen prijzen zijn de prijzen zoals ze werkelijk door de consumenten worden gedragen inclusief bv. de belastingen op de producten, zoals de belasting op de toegevoegde waarde, en houden rekening met de koopjesperiodes.

Inflatie : Inflatie wordt gedefinieerd als de verhouding tussen de waarde van het indexcijfer van de consumptieprijzen van een gegeven maand en het indexcijfer van dezelfde maand het jaar voordien. De inflatie meet dus het tempo waarin het algemene niveau van de prijzen evolueert.

COICOP ; COICOP is een nomenclatuur ontwikkeld door de Verenigde Naties welke tot doel heeft om individuele consumptie uitgaven van gezinnen te classificeren volgens gebruiksdoel.

Geharmoniseerd indexcijfer met constante belastingvoeten : Het geharmoniseerd indexcijfer van de consumptieprijzen met constante belastingvoeten is afgeleid van de HICP en wordt berekend door het niveau van indirecte belastingen (hoofdzakelijk accijnzen en BTW) constant te houden ten opzichte van het niveau dat in december van het jaar voordien werd waargenomen. Dit indexcijfer laat toe het maximum effect op de inflatie te meten bij wijzigingen in de belastingen door te veronderstellen dat deze rechtstreeks en integraal worden doorberekend op de eindprijs die wordt betaald door de consumenten.

Weging : Gewicht in de korf van goederen en diensten bepaald door de resultaten van de nationale rekeningen (uitgaven optiek) en die van het huishoudbudgetonderzoek.

Inflatie met constante belastingvoeten : Inflatie wordt gedefinieerd als de verhouding tussen de waarde van het indexcijfer van de consumptieprijzen van een gegeven maand en het indexcijfer van dezelfde maand het jaar voordien. De inflatie meet dus het tempo waarin het algemene niveau van de prijzen evolueert.

Metadata