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Published: 13 January 2012

Inflation slowed down to 2.9 per cent in December

The year-on-year change in consumer prices, i.e. inflation, calculated by Statistics Finland slowed down to 2.9 per cent in December. In November, it stood at 3.4 per cent. Inflation slowed down above all because the rising of liquid fuel prices eased off. The average inflation rate in 2011 was 3.4 per cent.

Inflation indicators in Finland, December 2011

	Point figure	Change on one year	Change on one month
Consumer Price Index 2010=100	104,4	2,9 %	-0,0 %
Cost-of-living Index 1951:10=100	1 828
Harmonised Index of Consumer Prices 2005=100	115,0	2,6 %	-0,0 %
Harmonised Index of Consumer Prices at Constant Taxes 2005=100	114,3	2,2 %	-0,1 %

In December, consumer prices were pushed up most from the previous year by risen prices of housing and food. Housing prices went up especially due to increases in energy prices, interest rates and rents. Food prices, in turn, were pushed up above all by risen prices of non-alcoholic beverages, confectionery and ice cream, meat, and dairy and cereal products. Increases in the prices of restaurant and café services also had an impact on inflation. Inflation was held back most in December by fallen prices of consumer electronics from the year before. From November to December, consumer prices remained unchanged on the average.

Each mid-month, Statistics Finland interviewers collect altogether around 50,000 prices on 483 commodities from approximately 2,700 outlets for the Consumer Price Index. In addition, some 1,000 items of price data are gathered by centralised collection. Consumer Price Index 2005=100 Handbook for Users can be found on the CPI home page at www.stat.fi. The new Consumer Price Index 2010=100 Handbook for Users will be published later.

According to preliminary data, inflation in the euro area was 2.8 per cent in December

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the euro area was 2.8 per cent in December. In November, it stood at 3.0 per cent. The corresponding figure for Finland in December was 2.6 per cent.

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 or vehicle tax. 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 December on 17 January. Information of inflation in EU countries is available on Eurostat homepage, eurostat (http://ec.europa.eu/eurostat).

The year-on-year change in the Harmonised Index of Consumer Prices at Constant Taxes was 2.2 per cent in December

The year-on-year change in the Harmonised Index of Consumer Prices stood at 2.6 per cent in December and that in the Index at Constant Taxes measuring market price changes at 2.2 per cent. Over twelve months, the combined raising impact on consumer prices from changes in commodity tax rates was thus 0.4 percentage points. The month-on-month change in the Harmonised Index was in December -0.0 per cent and in the Index of Consumer Prices at Constant Taxes -0.1 per cent. There were no changes in tax rates in December.

Harmonised Index of Consumer Prices at Constant Taxes

The inflation measured by Consumer Price Index consists mainly of products and services priced by enterprises and the public sector, and value added and commodity taxes. Some 25 per cent of the private consumption described by the Harmonised Index of Consumer Prices (HICP) consists of value added or other taxes. The Harmonised Index of Consumer Prices at Constant Taxes (HICP-CT) is based on the HICP so the two indices have the same weight structure and price data. HICP-CT is calculated with a method which holds the tax rate constant relative to the reference period. When tax changes take place, the impact of the tax change on commodity prices is eliminated from HICP-CT. The price impact of the tax changes is obtained by comparing the development of the HICP and HICP-CT.

Source: Consumer Price Index, Statistics Finland

Inquiries: Juhani Pekkarinen (09) 1734 3476, Johanna Leivo (09) 1734 3397, khi@stat.fi

Director in charge: Kari Molnar

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Appendix tables

• Appendix table 1. Consumer Price Index 2010=100 by commodity groups (13.1.2012)
• Appendix table 2. Cost-of-living Index 1951:10=100 (13.1.2012)
• Appendix table 3. Year-on-year changes in the Consumer Price Index (13.1.2012)
• Appendix table 4. Consumer Price Index 2000=100 (13.1.2012)
• Appendix table 5. Consumer Price Index 2005=100 (13.1.2012)

Figures

• Appendix figure 1. Annual change in the Consumer Price Index and the Harmonised Index of Consumer Prices, January 2001 - December 2011 (13.1.2012)
• Appendix figure 2. Goods and services with the largest impact on the year-on-year change in the Consumer Price Index, December 2011 (13.1.2012)
• Appendix figure 3. Annual change in the Harmonised Index of Consumer Prices and the Harmonised Index of Consumer Prices at Constant Taxes, January 2007 - December 2011 (13.1.2012)
• Appendix figure 4. Harmonised Index of Consumer Price Index 2005=100; Finland, Euro area and EU (13.1.2012)

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Updated 13.1.2012