15 May 1997
Inflation at 1.0 in April
Consumer prices rose by 1.0 per cent in the year to April. The rate of inflation accelerated for it was at 0.6 per cent in March. These figures are indicated by the Consumer Price Index of Statistics Finland.
Annual price development
The highest price increase in the year was in housing, up by 2.8 per cent. The price of housing rose above all due to more expensive owner-occupied housing. Rents, electricity, maintenance fees and light fuel oil also went up during the year. Altogether these commodities, which all belong to the housing category of the consumer price index, fuelled inflation by almost 0.9 percentage points. On the other hand, the fall in the interest rates of housing loans checked inflation by 0.4 percentage points.
Health and medical care saw a price rise of 2.4 per cent in one year. The main reasons for the increase in the health and medical care expenses of consumers was due to price rises in prescription medicine, medical fees, as well as in medical examination and treatment expenses.
Price increases in cigarettes, membership fees and alcoholic beverages in bars and restaurants also caused inflation to rise slightly.
The rise in consumer prices was curbed most by the fall in the interest rates of housing loans. Inflation was also decelerated slightly by lower interest rates of consumer credits as well as cheaper second-hand cars.
Price trend in one year, %
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| Prices that rose most 4/1996-4/1997 | Prices that fell most 4/1996-4/1997 | ||
| Peppers | +46.8 |
Chinese cabbage | -35.0 |
| House prices | +17.5 |
Computer games | -26.3 |
| Carrot | +14.9 |
Onions | -19.1 |
| Face cream | +13.1 |
Prawns | -18.7 |
| Fruit preserves | +10.6 |
Interest rates of consumer credits | -15.5 |
Price trend from March to April
Consumer prices rose from March to April by 0.5 per cent. Higher prices in housing accounted for almost one half of the rise. The price level rose also due to price increases in electricity and in tomatoes, peppers and carrots. The prices of air fares were also up.
The increase in prices in April was curbed the most by a fall in the price of cucumber, and interest rates also saw a further, marginal price fall.
Over 40 000 prices are collected for the consumer price index from about 2 000 outlets each mid-month. In addition, price data on some 600 items are gathered by centralised collection.
Inflation indicators in Finland
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| Point figure | Change on one year | Change on one month | |
| Consumer Price Index (1990=100), April |
113.8 | 1.0 % | 0.5 % |
| Cost of Living Index (1951:10=100), April |
1 412 | ||
| Harmonised Consumer Price Index of the EU (1996=100), April | 100.9 | 0.9 % | 0.3 % |
| Indicator of underlying
inflation (1990=100), March |
111.7 | 0.1 % | 0.4 % |
Harmonised consumer price index of the EU
The point figure of the harmonised consumer price index of the EU (1996=100) was 100.9 in April and the year-on-year change 0.9 per cent. The change from March to April was 0.3 per cent.
In March the inflation rate in Finland, at 0.8 per cent as measured by the harmonised consumer price index of the EU, was still the lowest in the Member States. The average inflation rate in the EU was 1.7 per cent in March.
Source: Consumer Price Index, April 1997
Inquiries: Ms Arja Kinnunen, tel. +358 9 1734 3479, or Mr Juhani
Pekkarinen,
tel. +358 9 1734 3476
Harmonised Consumer Price Index of the EU: Mr Jarko Pasanen,
tel. +358 9 1734 3423