Published: 13 August 2010
The year-on-year change in consumer prices, i.e. inflation, calculated by Statistics Finland was 1.1 per cent in July. In June it was 0.9 per cent. Inflation was accelerated above all by increases in the prices of owner-occupied housing and electricity.
Inflation indicators in Finland, July 2010
|Point figure||Change on one year||Change on one month|
|Consumer Price Index 2005=100||109,1||1,1 %||–0,5 %|
|Cost-of-living Index 1951:10=100||1 742|
|Harmonised Index of Consumer Prices 2005=100||109,8||1,3 %||–0,6 %|
|Harmonised Index of Consumer Prices at Constant Taxes 2005=100||109,6||1,5 %||–0,8 %|
In July, consumer prices were brought up most from the year before by increases in the prices of owner-occupied dwellings and real estate. The rise in prices was also due to increased prices of fuel, alcoholic beverages and electricity from last year's July. Inflation was curbed most in July by fallen food prices and interest rates.
From June to July consumer prices fell by 0.5 per cent, mainly due to clothing sales and fallen prices of restaurant and cafe services.
Each mid-month, Statistics Finland’s interviewers collect altogether around 50,000 prices on 497 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.
The value added tax of restaurant and cafe meals and non-alcoholic beverages fell in July from 22 per cent to 13 per cent. If the tax reduction had been fully visible in prices, prices would have fallen by 7.4 per cent. The prices of restaurant and cafe meals went down in July by an average of 5.7 per cent and of non-alcoholic beverages by 4.3 per cent.
Each month Statistics Finland's interviewers collect around 1,200 prices from more than 200 restaurants and cafes.
According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the EMU countries was 1.7 per cent in July. In June it was 1.4 per cent. The corresponding figure for Finland was 1.3 per cent in July.
The Harmonised Index of Consumer Prices does not include owner-occupancy, games of chance, interests on consumption and other credits or levies such as asset transfer tax and 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 EMU area is based on preliminary data from EMU Member States and on the price development of energy. Eurostat will publish detailed data on Harmonised Indices of Consumer Prices for July on 16 August.
The year-on-year change in the Harmonised Index of Consumer Prices stood thus at 1.3 per cent in July and that in the Index at Constant Taxes measuring market inflation at 1.5 per cent. Over twelve months, the combined lowering impact of changes in commodity tax rates was 0.2 percentage points. The month-on-month change in the Harmonised Index of Consumer Prices was -0.6 per cent and that in the Index at Constant Taxes -0.8 per cent in July. In July, the value added tax rose by one percentage point, with the exception of restaurant and cafe meals and non-alcoholic beverages, for which the tax fell from 22 to 13 per cent. Over one month, the raising impact of changes in these commodity tax rates on consumer prices was 0.2 percentage points.
In the Index at Constant Taxes the impact of the changes in the value added tax and other commodity taxes on inflation has been eliminated by keeping the taxes constant relative to the index base period. The Index measures market inflation or the change in prices caused by reasons other than changes in commodity taxes. The price impact of the tax changes is obtained by comparing the development of the Harmonised Index of Consumer Prices and the Index at Constant Taxes.
Source: Consumer Price Index, Statistics Finland
Inquiries: Christina Telasuo (09) 1734 3472, Antti Halmetoja (09) 1734 3475, firstname.lastname@example.org
Director in charge: Kari Molnar
Consumer price index 2010, July (pdf 245.4 kB)
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