15 October 1997
Inquiries: Ms Arja Kinnunen, tel. +358 9 1734 3479,
and Mr Juhani Pekkarinen, tel. +358 9 1734 3476
Harmonised Consumer Price Index of the EU: Mr Jarko Pasanen, tel.
+358 9 1734 3423
Statistical Director in charge: Mr Jarmo
Hyrkkö
Inflation remains at 1.6 per cent
Consumer prices rose by 1.6 per cent in the year to September, as indicated by the Consumer Price Index of Statistics Finland. From August to September the rise in prices was 0.2 per cent. Both the year-on-year and monthly change remained the same as in August.
Price development in the year: costly house prices continue to fuel inflation most
The sharpest price rises over the year in the various commodity groups of the consumer price index were in housing and food, both up by almost 3 per cent. Higher priced dwellings increased the price of housing the most, raising inflation by almost 0.6 percentage points. Also rents, electricity and the maintenance expenses of owner-occupied dwellings rose.
An over 50 per cent price rise in coffee increased food prices the most, although the prices of bread, grain products, milk and cheese also rose slightly. Inflation also accelerated as a result of higher prices recorded for petrol, electricity, cigarettes, and the retail sale and licensed selling of alcoholic beverages. Restaurant meals and hotel accommodation also saw a price rise over the year.
September inflation was curbed the most by lower interest rates on housing loans and consumer credit, cutting the year-on-year change in the consumer price index by 0.4 percentage points.
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| Price development over the year, % | |||
| Prices that rose most 9/1996 - 9/1997 | Prices that fell most 9/1996 - 9/1997 | ||
| Package of coffee | 52.1 |
Tomatoes | 31.5 |
| Potatoes | 18.2 |
Garden chair | 30.8 |
| Chinese cabbage | 18.0 |
Computer games | 30.2 |
| House prices | 17.5 |
Shrimps | 14.5 |
| Head cabbage | 16.7 |
Housing loan interest rates | 11.6 |
Price development in one month: High-priced clothing
Consumer prices rose by 0.2 per cent from August to September, largely accounted for by the increase in clothing prices. The discount sale of hotel accommodation ended as the summer passed, package holiday prices were higher and the price of coffee continued to rise. Rents were also up in September.
A fall in the prices of petrol, fruit and vegetables checked price rises in September the most.
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.
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| Inflation indicators in Finland | ||||||
| Point figure | Change on one year | Change on one month | ||||
| Consumer Price Index (1990=100), September |
114.6 | 1.6 % | 0.2 % | |||
| Cost of Living Index (1951:10=100), September |
1 423 | |||||
| Harmonised Consumer Price Index of the EU (1996=100), September | 101.7 | 1.6 % | 0.2 % | |||
| Indicator of underlying
inflation (1990=100), August |
112.5 | 1.3 % | 0.2 % | |||
Harmonised Consumer Price Index of the EU
Inflation in Finland, as calculated by the harmonised consumer price index of the EU, was close to the EU average in August. Average inflation in the EU was 1.8 per cent in August and that in Finland 1.6 per cent. The lowest August inflation rate was recorded in Ireland, at 0.6 per cent.
In September the Finnish point figure of the harmonised consumer price index (1996=100) was 101.7 and the year-on-year change 1.6 per cent. The index rose by 0.2 per cent from August to September.
Source: Consumer Price Index, September 1997. Statistics Finland