15 July, 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 unchanged in June
According to Statistics Finland's Consumer Price Index, consumer prices rose by 1.5 per cent in the year to June. The rate remained unchanged from May.
Higher housing and food prices pushed price level up most over the year
In the year, prices for food and non-alcoholic beverages went up by 3.2 per cent and those of housing, heat and light by 2.3 per cent. These two commodity groups of the Consumer Price Index account for two thirds of the inflation, for each of them had an upward effect of 0.5 percentage points on the price level. Increases in the prices of food and non-alcoholic beverages were chiefly due to higher fruit and vegetable prices, while housing prices were mainly pushed up by higher dwelling prices and rents.
Higher prices of package holidays, public transport and alcoholic drinks in restaurants also contributed to the higher price level this June compared to last year. Inflation was curbed most by the abolition of stamp duty on loans, lower prices of mobile telephones and call charges and a drop in housing loan interest rates.
In the May to June period, consumer prices went up by 0.2 per cent. The rise was essentially due to increases in membership fees, prices of fruit and maintenance costs of owner-occupied dwellings. Petrol prices also went up slightly in June. Price increases were curbed most in June by lower prices of tomatoes, fresh peppers and light fuel oil.
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| Inflation indicators in Finland | |||
| Point figure | Change on one year | Change on one month | |
| Consumer Price Index (1995=100), June | 103.5 | 1.5% | 0.2% |
| Cost of Living Index (1951:10=100), June | 1 438 | ||
| Harmonised Consumer Price Index of the EU (1996=100), June | 103.0 | 1.6% | 0.2% |
| Indicator of Underlying Inflation (1995=100), May | 102.4 | 1.2% | 0.2% |
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 May inflation rate in the EU in Austria and France
According to the Harmonised Consumer Price Index of the EU, the slowest May inflation rate of 1.0 per cent was recorded in Austria and France. The corresponding figure for Finland was 1.6 per cent, i.e. the same as the EU average. In the EMU member countries, the average inflation rate was 1.4 per cent.
In June, the Finnish point figure on the Harmonised Consumer Price Index (1996=100) stood at 103.0 and the year-on-year change at 1.6 per cent. From May to June, the index rose by 0.2 per cent.
Source: Consumer Price Index 1998, June. Statistics Finland