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Published: 15 August 2016

Inflation 0.5 per cent in July

The year-on-year change in consumer prices calculated by Statistics Finland was 0.5 per cent in July. In June, inflation stood at 0.4 per cent. The slight rise in inflation was influenced, for example, by increases in the consumer prices of the vehicle tax, hospital and dentist fees from one year ago.

Inflation indicators in Finland, July 2016

	Point figure	Annual change (%)	Monthly change (%)
Consumer Price Index 2010=100	100.3	0.5	-0.1
Cost-of-living Index 1951:10=100	1912
Harmonised Index of Consumer Prices 2015=100	100.3	0.5	-0.1
Harmonised Index of Consumer Prices at Constant Taxes 2015=100	100.1	0.3	-0.2

Consumer prices were raised in July by increases in the vehicle tax, hospital fees and dentist fees and prices of hotel rooms from one year ago. The rising of consumer prices was curbed most by reductions in the prices of liquid fuels and average housing loan interest rates from the year before. Examined in the short-term, the rise of inflation was mostly influenced by higher prices of cigarettes and package tours inside the EU. From June to July, consumer prices changed by -0.1 per cent.

Each mid-month, Statistics Finland's interviewers collect altogether around 48,000 prices on nearly 500 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.

According to preliminary data, inflation in the euro area was 0.2 per cent in July

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the euro area was 0.2 per cent in July. In June, it was 0.1 per cent. The corresponding figure for Finland was 0.5 per cent in July.

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 the 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 eurozone 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 April on 18 August. Information of inflation in EU countries is available on Eurostat homepage, eurostat (http://ec.europa.eu/eurostat/web/main).

The year-on-year change in the Harmonised Index of Consumer Prices at Constant Taxes was 0.3 per cent in July

The year-on-year change in the Harmonised Index of Consumer Prices stood at 0.5 per cent in July and that in the Index at Constant Taxes measuring market inflation at 0.3 per cent. Over twelve months, the combined raising impact on consumer prices from changes in commodity tax rates was thus 0.2 percentage points. 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 -0.2 per cent in July. Excise duties on tobacco products rose in July. The rise in excise duties in July transferred almost entirely to the prices of tobacco products.

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: Ilkka Lehtinen 029 551 3478, Kristiina Nieminen 029 551 2957, khi@stat.fi

Director in charge: Ville Vertanen

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Appendix tables

• Appendix table 1. Consumer Price Index 2015=100 by commodity groups (15.8.2016)
• Appendix table 2. Consumer Price Index 2015=100 by commodity groups, monthly and annual changes (15.8.2016)
• Appendix table 3. Cost-of-living Index 1951:10=100 (15.8.2016)
• Appendix table 4. Year-on-year changes in the Consumer Price Index, per cent (15.8.2016)
• Appendix table 5. Consumer Price Index 2010=100 (15.8.2016)
• Appendix table 6. Consumer Price Index 2005=100 (15.8.2016)
• Appendix table 7. Harmonised Index of Consumer Prices 2015=100 by commodity groups (15.8.2016)

Figures

• Appendix figure 1. Annual change in the Consumer Price Index and the Harmonised Index of Consumer Prices, January 2001 - July 2016 (15.8.2016)
• Appendix figure 2. Goods and services with the largest impact on the year-on-year change in the Consumer Price Index, July 2016 (15.8.2016)
• Appendix figure 3. Annual change in the Harmonised Index of Consumer Prices and the Harmonised Index of Consumer Prices at Constant Taxes, January 2007 - July 2016 (15.8.2016)
• Appendix figure 4. Harmonised Index of Consumer Price Index 2015=100; Finland, euro area and EU (15.8.2016)

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Updated 15.8.2016