Adjust your prices with a price index

What is a price index?

A price index measures the average change in prices of a product or service over a certain period. One of the best-known price indexes is the Consumer Price Index (CPI). You can use the CPI to see the impact of inflation in the Netherlands.

For example, you want to compare the prices of products between 2015 and now. In this case, 2015 is called the base year. It always equals 100. If the CPI figure in 2022 is 105, it means prices have risen by 5% on average. In other words, there has been a price increase of 5% relative to 2015.

As well as the CPI in the Netherlands, CBS publishes various price indexes on StatLine. You can use these indexes as an indicator for calculating your price adjustments.

When should I adjust my prices?

There are various reasons for raising your prices regularly. For instance:

• your costs have increased;
• the quality of your services or products has improved;
• you want to earn more from selling your services or products.

There are also reasons for lowering your prices. For example, if your costs have decreased or if you want to attract more customers. You are not obliged to adjust your prices.

Why use a CBS price index to adjust prices?

By using a price index, you are clear to your customers about how you adjust your prices. CBS calculates the price indexes by conducting extensive research on the prices of products and services in the Netherlands. Anyone can view the price indexes. The indexes are a reliable source for price developments. Many contracts and general conditions therefore state that prices are adjusted on the basis of a CBS price index.

Which price index should I use?

The most frequently used CBS price index is the CPI because it includes the most relevant price increases. You can also use a combination of indexes. For example, goods and services. CBS recommends using the main category of a price index as the guideline for your price adjustments. You can also make a specific selection of goods, services or sectors within the price indexes on StatLine.

You may use the following indexes:

• Consumer Price Index (CPI) for products. The CPI is a tool to measure inflation. The index demonstrates a price trend of a package of goods and services, such as daily groceries, clothing, gasoline, rent and insurance premiums.
• Service Producer Price Index (SPPI) for services. The index shows the price trend of services in the Netherlands.
• Producer Price Index (PPI) for raw materials. The index shows the average price change in selling prices, import prices and industrial products.
• Hourly CAO wages including special payments. The index shows the average change in CAO wages in the Netherlands.

Find out how to index your prices with a CBI price index. This article explains how you can use the data to calculate new prices for your products or services.

Making and announcing a price increase

Tell your customers why and how you have adjusted your prices. This makes you appear more professional. You may inform your customers by stating the price change in your general terms and conditions. If you want to raise your prices regularly, make sure to be transparent with your customers. For instance, always choose the same price index and period.

Do you want to include a price increase in a contract or agreement? CBS advises on how to clearly state your method of indexing in your contract. This includes:

• mention the name of the index;
• mention the moment of indexing;
• mention the period (month, quarter or year) to which the index number refers.