Inflation

Updated: 14 Jul 2020
Next update: 14 Aug 2020

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 -0.0 per cent in June

The year-on-year change in consumer prices calculated by Statistics Finland was -0.0 per cent in June. In May, inflation stood at -0.2 per cent. The increase in inflation was caused by higher prices of long-distance passenger transport by coach and wireless telephone services, for example.

Consumer prices were raised most in June by increases in the prices of cigarettes, long-distance train journeys, long-distance passenger transport by coach and children's day care from one year ago. The rising of consumer prices from one year back was curbed most by reductions in the prices of petrol, hotel room, diesel and light fuel oil. From May to June, the month-on-month change of consumer prices was 0.2 per cent, which was caused mainly by higher prices of petrol.

Statistical release