14 August, 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
Inflation declined to 1.1 per cent in July
According to Statistics Finland's Consumer Price Index, consumer prices rose by 1.1 per cent in the year to July. The rate of inflation slowed down in July as inflation was 1.5 per cent in May and June.
Inflation sustained by higher housing and transport prices
Higher dwelling prices and rents pushed the price level up most over the year. Inflation was also sustained by higher prices of public transport and used cars as well as increases in the prices of fruit, alcoholic drinks in restaurants and package holidays. Inflation was curbed most by the abolition of stamp duty on loans and the lower prices of mobile telephones, mobile call charges and coffee. The price of light fuel oil and interest rates were also lower than a year earlier.
In the June to July period, consumer prices went down by 0.3 per cent. As in recent years, this was mainly due to clothing sales. The lower prices of coffee, vegetables and hotel accommodation also pushed the price level down in July. Fall in prices was slowed down by increases in dwelling prices and higher prices of root crops, potatoes, international sea travel, subscription fees of newspapers and postal charges.
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| Inflation indicators in Finland | |||
| Point figure | Change on one year | Change on one month | |
| Consumer Price Index (1995=100), July | 103.2 | 1.1 % | -0.3 % |
| Cost of Living Index (1951:10=100), July | 1 435 | ||
| Harmonised Consumer Price Index of the EU (1996=100), July | 102.5 | 1.1 % | -0.5 % |
| Indicator of Underlying Inflation (1995=100), June* | 102.7 | 1.3 % | 0.3 % |
*The revised year-on-year change of the May Indicator of Underlying Inflation was 1.1 per cent instead of the previously published 1.2 per cent.
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 are gathered by centralised collection.
Slowest June inflation rate in the EU in Austria
According to the Harmonised Consumer Price Index of the EU, the slowest June inflation rate of 0.8 per cent was recorded in Austria. 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.
In July, the Finnish point figure on the Harmonised Consumer Price Index (1996=100) stood at 102.5 and the year-on-year change at 1.1 per cent. From June to July, the index went down by 0.5 per cent.
Source: Consumer Price Index 1998, July. Statistics Finland.