Inflation at 0.6 per cent in March

Consumer prices were up by 0.6 per cent in the year to March, and by 0.4 per cent from February to March. This appears from Statistics Finland's Consumer Price Index.

Price development over the year

The highest price increases in the various commodity groups of the consumer price index over the year were in health and medical care and in housing, heat and light. Both groups were up by 1.5 per cent. The prices of food and clothing fell by 0.2 per cent.

Inflation was accelerated most by the rise in house prices, rents and the price of petrol. The higher prices of cigarettes and light fuel oil as well as increased maintenance costs of owner-occupied housing also fuelled inflation. The rise in consumer prices was curbed most by interest rate cuts and lower prices of second-hand cars.

Price development from February to March

Consumer prices rose from February to March by 0.4 per cent. The rise was attributable above all to the fact that the end of the winter season raised the prices of clothing. The price level was also raised by the 0.4 per cent rise in the price of food caused by more expensive fruit, vegetables and coffee. The price of petrol also rose in March.

The rise in prices in March was checked most by the fall in the price of light fuel oil. There was a further slight fall in interest rates as well.

Price development over the year, %

A total of over 40 000 prices are collected for the consumer price index from about 2 000 outlets each mid-month. In addition, some 600 price data are gathered by centralised collection.

Harmonised Consumer Price Index of the EU

The point figure of the harmonised consumer price index of the EU (1996=100) was 100.6 in March and the year-on-year change 0.8 per cent. From February to March the index rose by 0.4 per cent.

Inflation indicators in Finland

In February the inflation rate in Finland - the year-on-year change in consumer prices - was the lowest in the EU, at 0.6 per cent, as measured by the harmonised consumer price index. The average inflation rate in the EU in February was 2.0 per cent.

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