Inflation

Updated: 13 Jul 2018
Next update: 14 Aug 2018

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 1.2 per cent in June

The year-on-year change in consumer prices calculated by Statistics Finland was 1.2 per cent in June. Inflation stood at 1.0 per cent in May. The increase in inflation from May to June was mainly caused by higher prices of petrol and renovation costs.

Consumer prices were raised most in June by increases in the prices of fuels, cigarettes and renovation costs from one year ago. The rising of consumer prices from one year back was curbed most by reductions in the prices of childrens day care, mobile phones, average housing loan interest rates and televisions. From May to June, consumer prices changed by 0.2 per cent.

Each mid-month, Statistics Finland's interviewers collect altogether around 50,000 prices on nearly 470 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.

Statistical release