Saturday. 28.01.2023

Electricity, fuel, tobacco and bank charges raised inflation in January

The rate of inflation in the whole Euro area was 1.4 per cent, while in Finland was 1.1 per cent

City commerce market by Daria Shevtsova
Photo by Daria Shevtsova.

The year-on-year change in consumer prices calculated by Statistics Finland was 1.1 per cent in January. In December, inflation stood at 1.2 per cent.

Statistics Finland has updated the commodity basket for the Consumer Price Index and the weight structure at the beginning of January. Drinking glass, frozen food container, plastic carrier bag, hair removal product and baby supply were added to the commodity basket. In addition, total data including sales data on all food products were taken into use.

Consumer prices were raised most in January by increases in the prices of electricity, fuels, capital repair on detached house, cigarettes and bank charges from one year ago. The rising of consumer prices from one year back was curbed most by reductions in the prices of mobile phones, detached houses, long-distance passenger transport by coach and televisions.

From December to January, the month-on-month change of consumer prices was -0.4 per cent, which was caused by lower prices of international flights and package holidays.

Each mid-month, Statistics Finland's interviewers collect altogether around 50,000 prices on nearly 470 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.

Inflation in the Euro area was 1.4% in January

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the Euro area was 1.4 per cent in January. In December, it stood at 1.6 per cent. The corresponding figure for Finland was 1.2 per cent in January.

The Harmonised Index of Consumer Prices does not include owner-occupancy, games of chance, interests on consumption and other credits, fire insurance on owner-occupied dwellings, the vehicle tax or fishing and hunting fees.

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 December on 22 February.

Consumer prices at constant taxes

The year-on-year change in the Harmonised Index of Consumer Prices stood at 1.2 per cent in January and that in the Index at Constant Taxes measuring market inflation at 1.0 per cent.

Over twelve months, the combined raising impact on consumer prices from changes in commodity tax rates was thus 0.2 percentage points. In January, taxes on alcoholic beverages, tobacco and energy were raised and the vehicle tax on low-emission new cars was lightened.

The month-on-month change in the Harmonised Index of Consumer Prices was -0.4 per cent and that in the Index at Constant Taxes -0.6 per cent in January.

Electricity, fuel, tobacco and bank charges raised inflation in January
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