Published: 14 September 2012
The year-on-year change in consumer prices, i.e. inflation, calculated by Statistics Finland was 2.7 per cent in August. In July, it was 2.9 per cent. Inflation slowed down primarily due to fallen interest rates.
Inflation indicators in Finland, August 2012
|Point figure||Change on one year||Change on one month|
|Consumer Price Index 2010=100||106,4||2,7 %||0,2 %|
|Cost-of-living Index 1951:10=100||1 865|
|Harmonised Index of Consumer Prices 2005=100||117,8||3,3 %||0,4 %|
|Harmonised Index of Consumer Prices at Constant Taxes 2005=100||116,1||2,4 %||0,4 %|
In August, consumer prices were pushed up most from the previous year by risen cost of food and transport, and increases in the retail prices of alcoholic beverages and housing costs. The cost of food went up mainly due to increases in the prices of meat, fruit, dairy products, confectionery and ice cream. Transport costs rose especially due to increases in fuel prices and the vehicle tax. Housing costs, in turn, were pushed up most by increases in rents and maintenance charges. Risen prices of restaurant and café services and clothing also had an impact on inflation. The rising in consumer prices was curbed most in August by fallen interest rates and prices of entertainment electronics, mobile communication services and electricity from the year before. From July to August, consumer prices rose by 0.2 per cent, primarily due to gradual ending of clothing sales and the prices of liquid fuels went up.
Each mid-month, Statistics Finland interviewers collect altogether around 50,000 prices on 483 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 Consumer Price Index 2010=100 Handbook for Users is available on the CPI-home page (www.stat.fi).
According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the euro area was 2.6 per cent in August. In July, it was 2.4 per cent. The corresponding figure for Finland in August was 3.3 per cent.
The Harmonised Index of Consumer Prices does not include owner-occupancy, games of chance, interests on consumption and other credits, fire insurance on detached houses or 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 euro area is based on preliminary data from the Member States and on the price development of energy. Eurostat will publish detailed data on Harmonised Indices of Consumer Prices for August on 14 September. Information of inflation in EU countries is available on Eurostat homepage, eurostat (http://ec.europa.eu/eurostat).
The year-on-year change in the Harmonised Index of Consumer Prices stood at 3.3 per cent in August and that in the Index at Constant Taxes measuring market inflation at 2.4 per cent. Over twelve months, the combined raising impact on consumer prices from changes in commodity tax rates was thus 0.9 percentage points. The month-on-month change in both the Harmonised Index of Consumer Prices and in the Index at Constant Taxes was 0.4 per cent in August. There were no changes in tax rates in August.
The inflation measured by Consumer Price Index consists mainly of products and services priced by enterprises and the public sector, and value added and commodity taxes. Some 25 per cent of the private consumption described by the Harmonised Index of Consumer Prices (HICP) consists of value added or other taxes. The Harmonised Index of Consumer Prices at Constant Taxes (HICP-CT) is based on the HICP so the two indices have the same weight structure and price data. HICP-CT is calculated with a method which holds the tax rate constant relative to the reference period. When tax changes take place, the impact of the tax change on commodity prices is eliminated from HICP-CT. The price impact of the tax changes is obtained by comparing the development of the HICP and HICP-CT.
Source: Consumer Price Index, Statistics Finland
Inquiries: Juhani Pekkarinen 09 1734 3476, Johanna Leivo 09 1734 3397, firstname.lastname@example.org
Director in charge: Kari Molnar
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