Increase in consumer prices

Inflation at 0.5 per cent in September

According to Statistics Finland's Consumer Price Index, inflation speeded up slightly in September. Consumer prices rose by 0.5 per cent in the year to September. The August inflation was 0.4 per cent.

Inflation in September was accelerated most, i.e. by 0.5 percentage points, by the increase in the price of petrol. The fall in interest rates in turn helped hold down inflation most, by close on 0.7 percentage points.

Price development in the year to September

The price of petrol was up by 13.6 per cent compared to the year before. Beverages and tobacco were up by 2.5 per cent in one year and health care by 2.0 per cent. The higher prices of cigarettes and electricity, and price rises in rents, lottery costs and dwellings also raised consumer prices.

The interest rates of housing loans fell by 1.5 percentage points over the year and those of consumer credits by 2 percentage points. Food was 1.2 per cent cheaper in September than a year ago. The prices of second-hand cars have continued to fall since May.

Price development from August to September

Consumer prices rose from August to September by 0.2 per cent. This was largely due to the 1.5 per cent increase in the price of clothing. The period of rebates in hotel rates ended in September, the price of light fuel oil increased by nearly 10 per cent and the prices of package tours also saw a slight increase.

The price of food fell by 0.4 per cent in September, which was almost entirely attributable to the fall in the prices of carrots, apples and rainbow trout. The prices of second-hand cars and petrol were also down. The fall in interest rates, which has been sustained since June 1995, also continued.

The Consumer Price Index 1990=100 was 112.8 in September.
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 September and the year-on-year change 1.2 per cent. The change from August to September was 0.2 per cent. In August the change on one year in Finland was 1.1 per cent. This was the second lowest in the EU countries, the lowest being that of Sweden, at 0.8 per cent. The average inflation rate in Member States was 2.4 per cent in August.

Underlying inflation -0.1 per cent in August

The point figure of the Bank of Finland's indicator of underlying inflation 1990=100 was 111.1 in August, and the year-on-year change -0.1 per cent.

Source: Consumer Price Index, September 1996. Statistics Finland
Further information: Kaisa Weckström-Eno, tel. +358 9 1734 3518