15 January, 1998
Inquiries: Ms Arja Kinnunen + 358 9 1734 3479, Mr
Juhani Pekkarinen + 358 9 1734 3476
Harmonised Index of Consumer Prices: Mr Jarko Pasanen + 358 1734
3423
Additional information also available on the index line + 358 9
0100 1734 (FIM 5.80/min+local call charge)
Statistical Director in charge: Mr Jarmo Hyrkkö
Inflation at 1.9 per cent in December
According to Statistics Finland's consumer price index, consumer prices went up by 1.9 per cent in the year to December. In the November to December period prices remained, on the average, unchanged. The average rate of inflation in 1997 was 1.2 per cent.
As of December 1997, changes in the consumer prices are measured according to a revised consumer price index. The revised index, (1995=100), based on the 1995 Consumption Survey reflects better today's consumption behaviour. Inflation figures published prior to December 1997 will remain unchanged irrespective of the index revision.
Both the old and the revised index put inflation development from 1995 to November 1997 at 2.5 per cent..
Price development in the year: food prices went up
most
The biggest price rises over the year in the various commodity
groups of the consumer price index occurred in foodstuffs, which
went up by 3.7 per cent. Almost half of this was due to an increase
in the price of coffee, but prices of fruit and meat also went up.
Overall, higher food prices pushed the inflation rate up by good
half a percentage point.
Housing costs, which went up by 3 per cent, put up the consumer
price level most, or almost 0.7 percentage points, of which half a
percentage point was attributable to higher prices of dwellings.
Rents, electricity and dwelling repairs and maintenance also went
up.
Inflation was also accelerated by higher prices of alcoholic drinks in restaurants, used cars and package tours. Inflation was curbed most by interest rates, which remained below last year's level. Petrol prices also went down slightly.
>
| Price development over the year, % | |||||||
| Prices that rose most 12/1996 - 12/1997 | Prices that fell most 12/1996 - 12/1997 | ||||||
| Packet of coffee | 51.6 |
Carrots | 20.8 |
||||
| Onions | 30.9 |
Head cabbage | 17.4 |
||||
| Peppers | 28.2 |
Domestic air fares | 15.3 |
||||
| Kiwi fruit | 27.7 |
Shrimps | 13.0 |
||||
| Bananas | 23.0 |
Chicken portions | 10.4 |
||||
Price development from November to December
In the November to December period prices remained, on the average, unchanged. More expensive package tours and the withdrawal of reduced price train fares tended to push up the price level most, while consumer price increases were curbed most by reduced price air fares over the Christmas season and lower prices of petrol and light fuel oil.
>
| Inflation indicators in Finland | |||
| Point figure | Change on one year | Change on one month | |
| Consumer Price Index (1995=100), December | 102.5 | 1.9 % | 0.0% |
| Cost of Living Index (1951:10=100), December | 1 425 | ||
| Harmonised Consumer Price Index of the EU (1996=100), December | 101.8 | 1.6 | 0.0 |
| Indicator of Underlying Inflation (1990=100), November | 112.9 | 1.2 | -0.2 |
Housing costs weigh most in the revised consumer price
index
In the revised consumer price index, housing has a bigger impact
than before. Increasing popularity of rented housing has almost
doubled the weight of rents compared to the previous 1990 index.
Repairs and renovations to own dwellings are included in the
revised index more extensively than before. Greater weight than
before is also given to heating and water costs while less weight
is given to owner-occupied housing.
A total of 50,000 prices are collected for the consumer price
index from approximately 2,000 outlets in the middle of each month.
In addition to this, some 600 price data are collected in a
centralised collection.
New products subject to price monitoring for the index include,
among others, a mobile telephone and mobile telephone call charges,
a portable CD player and portable seaming machine, an aerobic
exercise class and cat food and litter. New foodstuffs items
include frozen pastry, fillet of beef and fresh herbs. New services
include real estate agents' fees. Items dropped from the index
include, among others, tinned beef/pork meat, blank sound cassette
tape and tennis ball.
In the revised consumer price index, commodities are divided into 12 main groups. Apart from housing, increasing weight is also given to the health and medical care product group, while household articles, clothing and footwear and transport now carry slightly less weight.
EU's harmonised index of consumer prices was also revised in
December
The harmonised index of consumer prices for price comparison
within the Member States of the EU was revised in December. At the
same time, the point figures of the index were changed
retrospectively. According to the revised index, December inflation
was 1.6 per cent.
In November, the slowest inflation rates within
the EU were recorded in Ireland and Austria, both at 1.1 per cent.
The figure for Finland was 1.8 per cent, or the same as the EU
average.
Underlying inflation at 1.2 per cent in
November
Until this spring, calculation of the indicator of underlying inflation will continue to be based on the 1990 consumption structure. In November, the point figure of the underlying inflation indicator 1990=100 was 112.9 and the year-on-year change 1.2 per cent.
Source: Consumer price index 1997, December. Statistics Finland