Inflation 6.8 per cent in May 2023

Release related to topics:Prices and consumption Energy

release 14/06/2023 | Consumer price index 2023, May

According to Statistics Finland, the year-on-year change in consumer prices was 6.8 per cent in May. In April, inflation stood at 7.9 per cent. The decrease of inflation from April to May was caused by lower prices of petrol and by a milder rise in electricity prices, for example.

Inflation indicators in Finland, May 2023

	Point figure	Annual change (%)	Monthly change (%)
Consumer Price Index 2015=100	120.5	6.8	0.3
Cost-of-living Index 1951:10=100	2296
Harmonised Index of Consumer Prices 2015=100	119.1	5.0	0.1
Harmonised Index of Consumer Prices at Constant Taxes 2015=100	117.5	5.0	-0.3

The table depicts the point figures for all Statistics Finland's published series.

Key selections

Consumer prices were raised most in May by increases in average interest rate on housing loans, the prices of electricity and increases in consumer credits from one year ago.
The rising of consumer prices from one year back was curbed most by reductions in the prices of petrol, diesel and owner-occupied flats.
The month-on-month change of consumer prices was 0.3 per cent, which was caused by increases in average interest rate on housing loans, for example.
The core inflation of Consumer Price Index was 6.8 per cent. Core inflation does not include food and energy price changes, as the short-term price fluctuations in these are higher compared to other commodity groups.

According to preliminary data, inflation in the euro area was 6.1 per cent in May 2023

According to the preliminary data on the Harmonised Index of Consumer Prices (HICP), the rate of inflation in the euro area was 6.1 per cent in May. In April, it stood at 7.0 per cent. The corresponding figure for Finland was 5.0 per cent in May.

The Harmonised Index of Consumer Prices does not include owner-occupancy, games of chance, interests on consumption and other credits, fire insurance on owner-occupied dwellings, the vehicle tax or fishing and hunting fees. The consumption items included in the Harmonised Index of Consumer Prices, as well as the rules governing its compilation, have been defined in EU regulations.

Eurostat’s estimate of inflation in the euro area is based on preliminary data from the Member States and on the price development of energy. Eurostat will publish detailed data on Harmonised Indices of Consumer Prices for May on 16 June.

The year-on-year change in the Harmonised Index of Consumer Prices at Constant Taxes was 5.0 per cent in May 2023

The year-on-year change in the Harmonised Index of Consumer Prices (HICP) stood at 5.0 per cent in May and that in the Index at Constant Taxes (HICP-CT) measuring market inflation also at 5.0 per cent. Over twelve months, the combined raising impact on consumer prices from changes in commodity tax rates was thus 0.0 percentage points. The temporary reduction of the value added tax on electrical energy and domestic passenger transport has ended. Since May, the value added tax on electrical energy has returned from 10 to 24 per cent and the value added tax on domestic passenger transport from 0 to 10 per cent. The month-on-month change in the Harmonised Index of Consumer Prices was 0.1 per cent and that in the Index at Constant Taxes -0.3 per cent in May.

In the Index at Constant Taxes, the impact on inflation from changes in the value added tax and other commodity taxes has been eliminated by keeping the taxes constant relative to the index base period. The Index measures market inflation or the change in prices caused by reasons other than changes in commodity taxes. The price impact of the tax changes is obtained by comparing the development of the Harmonised Index of Consumer Prices and the Index at Constant Taxes.