16 February, 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 9 1734
3423
Director in charge: Mr Jarmo Hyrkkö
Inflation in January 1.9 per cent
According to Statistics Finland's consumer price index, consumer prices went up by 1.9 per cent in the year to January 1998. The increase is identical to the year-on-year increases from November 1996 to last year November, and December 1996 to last December. From December to January, prices went up by 0.1 per cent.
Price development in the year: cost of food up by 3.1 per cent
Over the year, consumer prices went up most, or well over 0.5 percentage points, due to a 2.5 per cent increase in the price of housing, heating and lighting. Higher dwelling prices were mainly to blame for this increase, but rents, electricity and dwelling repairs and maintenance also went up. Food went up by 3.1 per cent in the year. Almost half of this was due to an increase in the price of coffee, but prices of fruit, vegetables, bread and cereal products, meat, potatoes, and fats and oils also went up. Altogether, higher food prices pushed the inflation rate up by almost half a percentage point, although more expensive alcoholic beverages in restaurants, used cars, package tours and petrol also contributed to the upward tendency.
Consumer price increases were curbed most by lower prices of light fuel. Interest rates remained below last year's level and redemption fees for documents went down.
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| Price development over the year, % | |||||||
| Prices that rose most 1/1997 - 1/1998 | Prices that fell most 1/1997 - 1/1998 | ||||||
| Onions | 51.5 |
Iceberg lettuce | 38.0 |
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| Kiwi fruit | 42.1 |
Head cabbage | 24.6 |
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| Tangerine oranges | 42.0 |
Fresh mushrooms | 22.6 |
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| Packet of coffee | 38.1 |
Carrots | 20.3 |
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| Single copy of a newspaper | 23.0 |
Light fuel oil | 16.6 |
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Price development from December to January: cost of transport up
In the December to January period consumer prices went up by 0.1 per cent, mainly due to higher petrol prices. Bus, train, air, and local public transport ticket prices went up, as also did taxi fares. Increases in the prices of dwellings over last year's final quarter were also reflected in January's consumer price index and interest rates went up. The cost of food went up by one per cent in January, mainly due to higher prices of vegetables.
Increases in consumer prices were curbed most by clothing sales in January. The price of coffee went down in January and package tour prices fell after the Christmas season.
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| Inflation indicators in Finland | |||
| Point figure | Change on one year | Change on one month | |
| Consumer Price Index (1995=100), January | 102.7 | 1.9% | 0.1% |
| Cost of Living Index (1951:10=100), January | 1 427 | ||
| Harmonised Consumer Price Index of the EU (1996=100), January | 101.9 | 1.8% | 0.1% |
| Indicator of Underlying Inflation (1990=100), December | 113.0 | 1.3% | 0.1% |
Each mid-month, Statistics Finland's interviewers collect over 50 000 prices from approximately 2 000 outlets for the consumer price index. In addition, some 600 items of price data are gathered by centralised collection.
Belgium has lowest EU inflation in December
According to the harmonised EU consumer price index, the lowest inflation rate in December, 0.9 per cent, was recorded in Belgium. The figure for Finland, 1.6 per cent, was the same as the EU average.
In January the Finnish point figure on the harmonised consumer price index (1996=100) was 101.9, with the year-on-year change at 1.8 per cent. The change from December to January was 0.1 per cent.
Source: Consumer Price Index 1998, January. Statistics Finland