15 June, 1998
Inquiries: Ms Arja Kinnunen + 358 9 1734 3479, Mr
Juhani Pekkarinen + 358 9 1734 3476
Harmonised Consumer Price Index of the EU: Ms Mari Ylä-Jarkko +358
9 1734 3310
Director in charge: Mr Jarmo Hyrkkö
Rate of inflation slowed down to 1.5 per cent in May
According to Statistics Finland's Consumer Price Index, consumer prices rose by 1.5 per cent in the year to May. The rate of inflation slowed down, for in April it stood at 1.8 per cent. The slowing down was mainly attributable to the abolition of stamp duty on loans and to lower mobile telephone call charges. In the April to May period prices remained unchanged.
Higher housing and food prices pushed price level up most over the year
Prices of housing, heat and light went up by 2.2 per cent in the year to May, pushing the price level up by 0.5 percentage points. The increase was primarily due to increased dwelling prices and higher rents. The prices of food and non-alcoholic beverages rose by 2.4 per cent, mainly due to higher prices of coffee and fruit. The upward effect of this on the inflation was 0.2 percentage points.
The abolition of stamp duty on loans and lower mobile telephone call charges account for the reduction in the May inflation rate. The abolition of the stamp duty lowered inflation by 0.2 percentage points and the lower mobile telephone call charges by 0.1 percentage points. Consumer price increases were also curbed by lower prices of cucumber, light fuel oil and package tours. Rents went up by 1.8 per cent from February to April, and this put the price level up by 0.1 percentage points in May.
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| Inflation indicators in Finland | |||
| Point figure | Change on one year | Change on one month | |
| Consumer Price Index (1995=100), May | 103.3 | 1.5% | -0.0% |
| Cost of Living Index (1951:10=100), May | 1 435 | ||
| Harmonised Consumer Price Index of the EU (1996=100), May | 102.8 | 1.6% | 0.2% |
| Indicator of Underlying Inflation (1995=100), April | 102.2 | 1.3% | 0.4% |
Each mid-month, Statistics Finland interviewers collect over 50 000 prices from approximately 2 000 outlets for the Consumer Price Index. In addition, some 600 items of price data are gathered by centralised collection.
Slowest April inflation rate in the EU in Germany and France
According to the Harmonised Consumer Price Index of the EU, the lowest inflation rate of 1.0 per cent was recorded in Germany and France in April. The corresponding figure for Finland was 1.7 per cent, and the EU average 1.6 per cent. The average rate of inflation in the present member countries of the EMU was 1.4 per cent in April.
In May, the Finnish point figure on the Harmonised Consumer Price Index (1996=100) was 102.8 and the year-on-year change 1.6 per cent. From April to May the index rose by 0.2 per cent. The abolition of stamp duty on loans will have no impact on the harmonised consumer price index.
Source: Consumer Price Index 1998, May. Statistiscs Finland