Inflation

Updated: 14 Apr 2021
Next update: 14 May 2021

The Consumer Price Index is used as a general measure of inflation. The Consumer Price Index describes the price development of goods and services purchased in Finland by households resident in Finland. The Consumer Price Index is calculated with a method in which the prices of different commodities are weighed together with their shares of consumption.

Consumer price indices that are reviewed at intervals of a fixed number of years are suitable for short-term examinations. The Cost-of-living Index is a long time series calculated from the latest Consumer Price Index and its development, therefore, follows the Consumer Price Index. Many rents, such as those on dwellings, business premises or land, are usually tied to the Cost-of-living Index.

Along with economic growth, the unemployment trend and the fiscal balance, inflation has a key impact on economic conditions in Finland. High and volatile inflation is detrimental to the economy, consumers and businesses. An effort is made to stabilise the development of inflation, because instability of inflation causes market uncertainty and inefficiency, and adversely affects the planning of investments and savings. The effects of inflation are reflected in ordinary consumers’ purchasing behaviour and purchasing power, and also in companies’ willingness to invest.

   

Inflation 1.3 per cent in March

The year-on-year change in consumer prices calculated by Statistics Finland was 1.3 per cent in March. In February, inflation stood at 0.9 per cent.

From last March to this March, increases in the prices of petrol, diesel, detached houses, cigarettes, and capital repair on detached houses had the largest upward impacts on the consumer price index. Decreases in the average interest rates on housing loans and consumer credit and the prices of hotel rooms, beer served in restaurants, and televisions had the largest downward impacts. From February to March, consumer prices rose by 0.2 per cent.

Statistical release