Tuesday. 28.11.2023

Inflation has risen in Finland considerably in the last 12 months, driven by the increase in prices of automotive fuels and the increase in taxes imposed on them by the government headed by Prime Minister Sanna Marin (SDP).

The year-on-year change in consumer prices calculated by Statistics Finland was 2.2% in May.

"Among other things, the development of fuel prices explains the increase in inflation," said the statistical office in a statement.

In April, inflation stood at 2.1%.

From last May to this May, increases in the prices of petrol, diesel, detached houses and capital repair on detached houses had the largest upward impacts on the consumer price index.

Decreases in the prices of long-distance train journeys, regular ferry service and beer sold in restaurants and the average interest rates on housing loans and consumer credit had the largest downward impacts.

From April to May, consumer prices rose by 0.2%, which was partly due to a rise in the prices of owner-occupied housing and games of chance.

Euro area inflation

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the euro area was 2% in May. In April it was 1.6%.

The corresponding figure for Finland was 2.3% in May.

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.

Finland's inflation rose in May driven by higher gasoline prices