15 September 1997
Inflation rises to 1.6 per cent in August
Consumer prices rose by 1.6 per cent in the year to August, as indicated by the Consumer Price Index of Statistics Finland. The rate of inflation accelerated for it was at 1.2 per cent in July. From July to August the increase in prices amounted to 0.2 per cent. Since December 1996 the price level has risen by 1.5 per cent.
Price development in one year:
The price of housing increased the most
The sharpest price rise in the various commodity groups over the year was in housing, up by 3.3 per cent. This was due primarily to the increase in house prices. In addition, rents went up, as did the prices of light fuel oil, electricity and maintenance fees in owner-occupied dwellings. On the other hand, the interest rates of housing were clearly lower than a year ago.
The price of food was up by 2.1 per cent in the year. The rise was attributable above all to the 46 per cent rise in the price of coffee, but also contributing was the increased price of potatoes, up by nearly 32 per cent over the year. Price rises in alcoholic beverages and petrol also caused inflation to rise.
Lower interest rates continued to curb inflation the most. Clothing and footwear were also slightly cheaper than a year ago.
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| Price development over the year, % | |||
| Prices that rose most 8/1996-8/1997 | Prices that fell most 8/1996-8/1997 | ||
| Package of coffee | 45.5 |
Garden chair | 30.8 |
| Head cabbage | 41.4 |
Computer games | 30.5 |
| Potatoes | 31.5 |
Apples | 21.1 |
| Onions | 25.5 |
Shrimps | 19.3 |
| Chinese cabbage | 18.6 |
Carrots | 19.0 |
Price development in one month:
The price of petrol up by 4.3 per cent
Consumer prices rose from July to August by 0.2 per cent, largely accounted for by the 4.3 per cent rise in the price of petrol. There was a slight increase in clothing prices, which was due in part to sale prices returning to regular levels. Alcoholic beverages in restaurants, coffee and light fuel oil also saw small price rises.
The rise in consumer prices in August was checked most by the lower prices of package holidays. The price of food fell by 0.3 per cent, due mainly to the fact that the price of potatoes fell.
Statistical interviewers collect over 40 000 prices 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.
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| Inflation indicators in Finland | |||
| Point figure | Change on one year | Change on one month | |
| Consumer Price Index (1990=100), August |
114.4 | 1.6% | 0.2% |
| Cost Of Living Index (1951:10=100), August |
1 420 | ||
| Harmonised Consumer Price Index of the EU (1996=100), August | 101.5 | 1.6% | 0.3% |
| Indicator of Underlying
Inflation (1990=100), July |
112.3 | 0.8% | -0.2% |
Harmonised Consumer Price Index of the EU
The point figure of the harmonised consumer price index of the EU (1996=100) was 101.5 per cent in August and the year-on-year change 1.6 per cent. From July to August the change was 0.3 per cent.
In July the inflation rate in Austria was the lowest in the Member States, at 0.9 per cent, as measured by the harmonised consumer price index. The second lowest inflation rates were those of Finland and France, at 1.1 per cent. The average inflation rate in the EU in July was 1.7 per cent.
Source: Consumer Price Index, August 1997.
Statistics Finland
Further information: 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