In 2007, the calculation method and publication of the consumer price index (CPI) will be changed in some respects. The CPI defines the official inflation rate in the Netherlands and is used, for instance, to make changes in rates and contracts. The main changes are outlined below and a more elaborate explanation will be given once the first results are published.
Main changes The most important changes concerning the CPI are: The base year is shifted to 2006 (2006 = 100). Annually a new basket of goods and services is defined (annual base shift). Part of health care and the supplementary health insurance will be included in the CPI.
Consequences for CPI users For most people who use the CPI, for instance to update rates and contracts, the changes will have no further consequences. The transition to the new series 2006 = 100 is more or less the same as the base shifts previously implemented every five years.
On the other hand, the base shift will have consequences for people who use more detailed figures and weighting factors to make more complicated calculations.
With the introduction of 2006=100, the CPI will be calculated as a chain index with annual base shift.
For the next few years, the reference year will be 2006, but the weighting factors will be adjusted annually to comply with new spending pattern of the average Dutch consumer. Interpretation and use of the weighting factors will also be slightly different.
marketing@alchempro.com
