Home > Statistics > Consumer price index > 2013 > January > Inflation slowed down to 1.6 per cent in January

Published: 19 February 2013

Inflation slowed down to 1.6 per cent in January

The year-on-year change in consumer prices, i.e. inflation, calculated by Statistics Finland slowed down to 1.6 per cent in January. In December, it stood at 2.4 per cent. Inflation was held back above all because the rising of retail alcohol and fuel prices eased off. From the beginning of January, the Consumer Price Index is a chain index, where the commodity basket and weights are updated annually.

Inflation indicators in Finland, January 2013

	Point figure	Change on one year	Change on one month
Consumer Price Index 2010=100	106,7	1,6 %	-0,1 %
Cost-of-living Index 1951:10=100	1 870
Harmonised Index of Consumer Prices 2005=100	119,0	2,6 %	0,0 %
Harmonised Index of Consumer Prices at Constant Taxes 2005=100	116,4	1,9 %	-0,7 %

In January, consumer prices were pushed up most from the previous year by risen prices of food and transport. Food prices went up most due to higher prices of meat, vegetables, fruit and dairy products. Transport prices increased mainly due to the raised vehicle tax. Increases in prices of restaurant and café services, in rents and in tobacco prices similarly had a great impact on inflation. The rising of consumer prices was curbed most in January by fallen interest rates and prices of telecommunication services from the year before. From December to January, consumer prices fell by 0.1 per cent despite the raised value added tax.

Each mid-month, Statistics Finland interviewers collect altogether around 50,000 prices on 486 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. The Consumer Price Index 2010=100 Handbook for Users is available on the CPI-home page (www.stat.fi).

According to preliminary data, inflation in the euro area was 2.0 per cent in January

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the euro area was 2.0 per cent in January. In December, it stood at 2.2 per cent. The corresponding inflation for Finland was 2.6 per cent in January.

The Harmonised Index of Consumer Prices does not include owner-occupancy, games of chance, interests on consumption and other credits, fire insurance on detached houses 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 January on 28 February. 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 1.9 per cent in January

The year-on-year change in the Harmonised Index of Consumer Prices stood at 2.6 per cent in January and that in the Index at Constant Taxes measuring market inflation at 1.9 per cent. Over twelve months, the combined raising impact on consumer prices from changes in commodity tax rates was thus 0.7 percentage points. The month-on-month change in the Harmonised Index of Consumer Prices was 0.0 per cent and that in the Index at Constant Taxes -0.7 per cent in January. The value added tax was raised by one percentage point in January.

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, Mari Ylä-Jarkko 09 1734 3310, khi@stat.fi

Director in charge: Leena Storgårds

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Reviews

• 1. The calculation methods of the Consumer Price Index have been revised (19.2.2013)

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Appendix tables

• Appendix table 1. Consumer Price Index 2010=100 by commodity groups (19.2.2013)
• Appendix table 2. Cost-of-living Index 1951:10=100 (19.2.2013)
• Appendix table 3. Year-on-year changes in the Consumer Price Index, per cent (19.2.2013)
• Appendix table 4. Consumer Price Index 2000=100 (19.2.2013)
• Appendix table 5. Consumer Price Index 2005=100 (19.2.2013)

Figures

• Appendix figure 1. Annual change in the Consumer Price Index and the Harmonised Index of Consumer Prices, January 2001 - January 2013 (19.2.2013)
• Appendix figure 2. Goods and services with the largest impact on the year-on-year change in the Consumer Price Index, January 2013 (19.2.2013)
• Appendix figure 3. Annual change in the Harmonised Index of Consumer Prices and the Harmonised Index of Consumer Prices at Constant Taxes, January 2007 - January 2013 (19.2.2013)
• Appendix figure 4. Harmonised Index of Consumer Price Index 2005=100; Finland, Euro area and EU (19.2.2013)

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Updated 19.2.2013