Inflation 

Updated: 13.4.2018 - Next update: 14.5.2018
   
 
 
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Inflation 0.8 per cent in March

The year-on-year change in consumer prices calculated by Statistics Finland was 0.8 per cent in March. In February, inflation stood at 0.6 per cent. The slight increase in inflation from February to March was caused primarily by a rise in the price of food.

Consumer prices were raised most in March by increases in the prices of cigarettes, the vehicle tax, rents and hospital fees 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, second-hand passenger cars, games of chance, mobile telephones and petrol. From February to March, consumer prices changed by 0.2 per cent, which was mainly caused by risen prices of clothing.

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

Source:
Statistics Finland / Consumer price index


Description of indicator

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.