Inflation at 0.7 per cent in May

Consumer prices rose by 0.7 per cent in the year to May, and by 0.2 per cent from April to May. The single most important factor in the increase in prices on the year before was the rise in the price of petrol. Despite the rising prices of the past few months the fall in the price of food was again the biggest curb on inflation. This appears from Statistics Finland's Consumer Price Index.

Price trend in the year to May

Of all CPI commodity groups, beverages and tobacco, and transport and communications showed the biggest price increase in one year, by 2.6 per cent each. The rise in transport and communication costs boosted inflation most, by a good 0.5 percentage points. This was almost entirely attributable to the over 13 per cent rise in the price of petrol in the twelve months. Inflation was also fuelled by the higher car utilisation fee. The increase in consumer prices was also accelerated by the higher prices of electricity and by rent increases.

The reduced interest rates of both housing loans and consumer credits curbed the inflation in May most , i.e. by nearly 0.6 percentage points. Food was 1.9 per cent cheaper in May than it was a year earlier. The decline in the price of food was accounted for above all by the price decreases of coffee, potatoes and minced meat. Cheaper new-car and used-car prices and the lower cost of local calls also lowered inflation somewhat.

Price trend from April to May

The 0.6 per cent rise in the price of food pushed up consumer prices most from April to May. This was attributable above all to the higher prices of kiwis, head cabbage and peppers. Of the single commodities, the rise in the price of petrol and rent increases raised consumer prices most. Used-car prices also took a new upward turn in May.

The cheaper prices of package tours and the falling interest rates provided the greatest curtailment on price increases in May.

The Consumer Price Index 1990=100 was 112.9 in May.
The Cost of Living Index 1951:10=100 was 1 401.

Harmonised Consumer Price Index of the EU

The point figure of the interim harmonised consumer price index of the EU (1994=100) was 102.6 in May and the year-on-year change 1.4 per cent. Of the EU countries, Finland's year-on-year change, at 1.2 per cent, was the lowest in April, EU average for April being 2.7 per cent.

Underlying inflation 0.1 per cent in April

The point figure of the Bank of Finland's indicator of underlying inflation (1990=100) was 111.6 in April, and the year-on year change 0.1 per cent.

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