Inflation at 0.4 per cent in February

Consumer prices rose by 0.4 per cent in the year to February. From January to February the point figure of the consumer price index rose by 0.1 per cent. This information can be gathered from the Consumer Price Index of Statistics Finland.

Trend in the consumer price index and rents since 1990

Of the main commodity groups, the sharpest rise over the year occurred in health and medical care, up by 1.7 per cent. The increase in beverages and tobacco and housing costs was the second highest. The price of clothing and footwear fell by 1.3 per cent.

Changes in the prices of individual products - substantial as they may be - do not necessarily have much effect on the overall price level. Inflation was fuelled most by increased housing costs: house prices, rents, maintenance costs and the price of light fuel oil rose. The greatest curtailment on the inflation was provided by interest rate cuts, lower prices of second-hand cars and cheaper clothing and footwear.

From January to February the prices of clothing and footwear rose most. Inflation was also boosted by the rise in the price of package tours due to the skiing holiday season. The rise in consumer prices in February was checked most by the fall in the price of petrol and light fuel oil. There was a further slight fall in interest rates as well.

The following prices rose most: ...fell most:
over the year
- garlic (+17.0%) - PC games (-27.8%)
- light fuel oil (+15.8%) - interest rates of consumer
credits (-18.6%)
- head cabbage (+15.4%) - onions (-18.5%)
- peppers (+14.6%) - interest rates (-15.3%)
- carrots (+14.1%) - prawns (-14.6%)
from January to February
- peppers (+24.6%) - cucumber (-11.4%)
- skirt (+17.4%) - tomatoes (-10.4%)
- women's blouse (+12.6%) - children's overall (-9.3%)
- bananas (+10.7%) - men's tracksuit (-8.7%)
- women's trousers (+10.5%) - light fuel oil (-8.0%)

Harmonised consumer price index

The point figure of the harmonised consumer price index (1996=100) was 100.2 in February and the year-on-year change 0.6 per cent. The revised point figure of Finland, measured by the harmonised consumer price index of the EU, was 99.9 in January and inflation, at 0.7 per cent, the lowest in the EU countries. The average inflation rate in the EU countries in January was 2.2 per cent.
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Inflation indicators in Finland	Point figure	Change on one year	Change on one month
Consumer Price Index (1990=100) February	112.8	0.4%	0.1%
Cost of Living Index (1951:10=100) February	1 400
Harmonised Consumer Price Index (1996=100), February	100.2	0.6%	0.3%
Indicator of underlying inflation (1990=100), January	111.1	0.2%	-0.4%

Source: Consumer Price Index, February 1997
Further information: Arja Kinnunen, tel. +358 9 1734 3479, or Juhani Pekkarinen +358 9 1734 3476, Harmonised Consumer Price Index: Jarko Pasanen, tel. +358 9 1734 3423