July inflation at 0.5 per cent

Consumer prices were up by 0.5 per cent in the year to July. From June to July, however, there was a 0.1 per cent fall in consumer prices, as indicated by the Consumer Price Index of Statistics Finland.

Price development in the past 12 months

The highest rise in prices this year has been in the price of beverages and tobacco, up by 2.6 per cent. Health care was up by 1.9 per cent and transport and communications by 1.3 per cent. The price of food rose at the beginning of the year and for example the price of fresh fruit increased by 34 per cent from January to July. Nevertheless, food was still 1.9 per cent cheaper than a year ago.

Inflation was accelerated the most by the rise in the price of petrol, electricity and cigarettes. The fall in interest rates and the cut in the prices of second-hand cars in turn curbed inflation.

Price development from June to July

Consumer prices fell from June to July by 0.1 per cent. This was largely due to the clearance sales in clothes, which reduced the month-on-month change in the consumer price index by 0.2 percentage points.

The prices of houses rose in the second quarter of the year, thus raising consumer prices by 0.1 percentage points. In the second quarter the prices of owner-occupied flats rose on average by 4.2 per cent in the whole country. Furthermore, the price of medicine on prescription was up by 3.1 per cent and medical fees increased by 2.2 per cent. The prices of package tours also rose in July, by 1.8 per cent.

The Consumer Price Index 1990=100 was 112.8 in July
The Cost of Living Index 1951:10=100 was 1 400.

The EU harmonised consumer price index

The point figure of the interim harmonised consumer price index of the EU 1994=100 was 102.3 in July and the change on one year was 1.1 per cent. In June the change on one year in Finland was 1.2 per cent. In the EU countries, the lowest inflation in June, calculated according to the harmonised consumer price index, was in Sweden, at 1.0 per cent. The highest inflation was in Greece, at 8.5 per cent. The average inflation in the EU countries was 2.5 per cent in June.

Underlying inflation at 0.1 per cent in June

The point figure of the indicator of underlying inflation 1990=100 was 111.7 in June and the change on one year was 0.1 per cent.

Source: Consumer Price Index, July 1996
Inquiries: Ms Arja Kinnunen, tel. + 358 0 1734 3279, or
Mr Juhani Pekkarinen, tel. +358 0 1734 3476.