16 June 1997
Inflation at 1.0 per cent in May
Consumer prices rose by 1.0 per cent in the year to May. From April to May the rise in prices amounted to 0.2 per cent.
Price development in the year
The highest price rise in the year was in housing, up by 2.9 per cent. The price rise was due above all to the increase in the prices of dwellings. Higher maintenance fees in owner-occupied dwellings, higher rents as well as electricity charges and more expensive light fuel oil also contributed to the price rise in housing. Altogether these commodities fuelled inflation by 0.9 percentage points. Price rises in cigarettes, membership fees and in coffee also increased consumer prices to some extent.
Lower interest rates continued to curb inflation the most, with the effect of interest rate falls on inflation being almost 0.5 percentage points. Inflation was also kept in check by price falls in petrol and second-hand cars.
>
| Price trend in one year, % | |||
| Prices that rose most 5/1996-5/1997 | Prices that fell most 5/1996-5/1997 | ||
| Peppers | +43.1 |
Cabbage | -28.9 |
| House prices | +17.5 |
Computer games | -26.3 |
| Pot plants | +14.8 |
Prawns | -19.6 |
| Light fuel oil | +11.5 |
Cucumber | -16.1 |
| Facial cream | +11.1 |
Kiwi | -15.4 |
Price trend from April to May
Consumer prices rose by 0.2 per cent from April to May, largely accounted for by the one per cent increase in the price of foodstuffs. The price of food went up due to price rises in meat, fruit, vegetables and coffee. The price of a package of coffee rose from April to May by 8.1 per cent and has already seen an increase of 18 per cent during this year. Price rises in rents, in the retail prices of alcoholic beverages and in second-hand cars also increased the price level in May.
The rise in consumer prices was curbed in May above all by cheaper package holidays. The interest rates of housing loans and consumer loans continued to fall gradually.
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 | |||
| Point figure | Change on one year | Change on one month | |
| Consumer Price Index (1990=100), May |
114,0 | 1,0 % | 0,2 % |
| Cost Of Living Index (1951:10=100), May |
1 415 | ||
| Harmonised Consumer Price Index of the EU (1996=100), May | 101,2 | 0,9 % | 0,3 % |
| Indicator of underlying
inflation (1990=100), April |
112,0 | 0,4 % | 0,2 % |
Harmonised consumer price index of the EU
The point figure of the harmonised consumer price index of the EU (1996= 100) was 101.2 per cent in May and the year-on-year change 0.9 per cent. The change from April to May was 0.3 per cent.
In April the lowest inflation rate in the EU countries as calculated by the harmonised consumer price index was in Finland and Belgium, at 0.9 per cent. The average inflation rate in the EU was 1.5 per cent in April.
Source: Consumer Price Index, May 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