Inflation at 0.5 per cent in February

According to Statistics Finland's Consumer Price Index prices rose by 0.5 per cent in the year to February. From January to February consumer prices rose by 0.3 per cent.

Of all commodity groups, the biggest rise in one year was in the price of beverages and tobacco, by 2.2 per cent. The higher prices of prescription medicines and increased dental fees raised the costs of health and medical care by 2.0 per cent in the twelve months. Inflation was, however, boosted most by the increase in transport and communications costs. Of single commodities, the price of petrol rose by 6.3 per cent in the twelve months, the car utilisation fee was up, as were the prices of second-hand cars, by 2.1 per cent.

From January to February consumer prices were increased most by the higher price of the national Lottery. The end of seasonal clothing sales caused the increase in the price of clothing and the winter holiday season raised the prices of package tours in February. Rents were also up in January-February.

Food was 3.5 per cent cheaper than a year ago, being still the biggest curb on inflation. Fresh cucumber and potatoes were a good quarter down from a year earlier. The price of rainbow trout fell by 22 per cent on a year ago, as did the price of minced meat, by 17 per cent. The price of food was, however, up by 0.8 per cent from January to February, which was almost entirely attributable to the rise in banana and cucumber prices.

The interest rate cuts and the fall in dwelling prices lowered annual inflation almost as much as the fall in the price of food. The prices of second-hand cars also took a downward turn.

The Consumer Price Index 1990=100 was 112.4 in February.
The Cost of Living Index 1951:10=100 was 1 394.

Harmonised Consumer Price Index of the EU

The point figure of the interim harmonised consumer price index of the EU (1994=100) was 101.8 in February and the year-on-year change 0.9 per cent. Of the EU countries, Finland's year-on-year change at 0.8 per cent was the lowest in January, EU average for January being 2.8 per cent.

The rate of underlying inflation at zero per cent in January.

The point figure of the Bank of Finland's indicator of underlying inflation (1990=100) was 110.8 in January, and the year-on-year change 0.0 per cent.

Source: Consumer Price Index, February 1996
Further information: Kaisa Weckström-Eno, tel. +358 0 1734 3479,
or Juhani Pekkarinen, tel. +358 0 1734 3476.