16 October, 2000
Inquiries: Mr Timo Koskimäki +358 9 1734 3479, Ms
Mari Suviranta +358 9 1734 3501
Harmonised Index of Consumer Prices: Ms Mari Ylä-Jarkko +358 9 1734
3310
Director in charge: Mr Jarmo Hyrkkö
Inflation accelerated to 4.2 per cent in September
According to Statistics Finland, the year-on-year change in consumer prices, i.e. inflation, was 4.2 per cent in September. The rate of inflation was 3.8 per cent in August. This acceleration was due to higher prices of light fuel oil and petrol.
The direct impact of higher petrol and light fuel oil prices on inflation amounted to 1.2 percentage points in September. Higher interest rates put inflation up by 0.6 and higher dwelling prices by 0.3 percentage points. In addition, food prices and rents rose in the year to September.
Inflation was slightly curbed in September by lower prices of used cars, electricity and mobile telephones.
From August to September, consumer prices increased by 0.7 per cent, which was mostly due to higher prices of light fuel oil and petrol.
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Inflation indicators in Finland, September 2000 |
|||
|
Point figure |
Change on one year |
Change on one month |
|
|
Consumer Price Index (1995=100) |
109.3 |
4.2% |
0.7% |
|
Cost of Living Index (1951:10=100) |
1,519 |
||
|
Harmonised Index of Consumer Prices (1996=100) |
108.1 |
3.4% |
1.0% |
Each mid-month, Statistics Finland interviewers collect over 50,000 prices from approximately 2,000 outlets for the Consumer Price Index. In addition, some 600 items of price data are gathered by centralised collection.
Inflation in EU countries 2.0 per cent in August
According to the Harmonised Index of Consumer Prices, the rate of inflation in the EU Member States was 2.0 per cent in August. Inflation slowed down slightly, as it was 2.2 per cent in July. Inflation in the EU was still fastest in Ireland, at 5.7 per cent and slowest in the United Kingdom, at 0.6 per cent. The corresponding figure for Finland stood at 2.9 per cent. In the member countries of the EMU, inflation was 2.3 per cent in August.
In September, the Finnish point figure on the Harmonised Index of Consumer Prices (1996=100) stood at 108.1 and the year-on-year change at 3.4 per cent. From August to September, the index rose by 1.0 per cent. Eurostat, the statistical office of the European Communities, will publish the EU's Harmonised Indices of Consumer Prices for September on 17 October.
Source: Consumer Price Index 2000, September. Statistics Finland
Appendix: Calculation of the total effect of oil product prices on consumer prices
APPENDIX
Total effect of oil products on inflation about 1.7 percentage points
The total effect of oil products on inflation was about 1.7 percentage points in September. The year-on-year change of the official Consumer Price Index was 4.2 per cent in September. The year-on-year change of the Consumer Price Index calculated excluding the direct and indirect effects of price changes of oil products was 2.5 per cent in September.
The estimate is based on Statistics Finland's calculation on the total effect of oil product prices on consumer prices. The calculation was based on input-output analyses of national accounts. In addition, separate estimates were made on the indirect price effects of oil products on flights, boat trips, package tours and plastic products.
The calculation indicates that the proportion of indirect use of oil products, for example as raw materials or in transportation, is around 1.3 per cent of private consumption. Direct use of oil products, mainly petrol and light fuel oil, accounts for about 4.5 per cent of private consumption.
In the calculation, changes in oil product prices are assumed to transfer to consumer prices without any particular delay.
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Development of official Consumer Price Index 1995=100 and of Consumer Price Index 1995=100 excluding oil1) in 1995-2000 |
|||||
|
Year/ month |
Official Consumer Price Index 1995=100 |
Consumer Price Index 1995=100 excluding oil |
Difference, % |
||
|
Change on previous year, % |
Change on previous year, % |
||||
|
1995 |
100.0 |
100.0 |
|||
|
1996 |
100.6 |
0.6 |
100.0 |
0.0 |
0.6 |
|
1997 |
101.8 |
1.2 |
101.1 |
1.1 |
0.1 |
|
1998 |
103.2 |
1.4 |
102.8 |
1.7 |
-0.3 |
|
1999 |
104.4 |
1.2 |
103.6 |
0.8 |
0.4 |
|
2000 |
|||||
|
1 |
105.5 |
2.2 |
103.8 |
0.8 |
1.4 |
|
2 |
106.2 |
2.7 |
104.4 |
1.1 |
1.6 |
|
3 |
106.9 |
3.1 |
104.7 |
1.2 |
1.9 |
|
4 |
107.2 |
2.7 |
105.3 |
1.4 |
1.3 |
|
5 |
107.7 |
2.9 |
105.6 |
1.5 |
1.4 |
|
6 |
108.2 |
3.5 |
105.8 |
1.7 |
1.8 |
|
7 |
108.3 |
3.7 |
105.8 |
2.2 |
1.5 |
|
8 |
108.5 |
3.8 |
106.0 |
2.6 |
1.2 |
|
9 |
109.3 |
4.2 |
106.2 |
2.5 |
1.7 |
1) Direct and indirect price effects of oil were removed from the Consumer Price Index.