Wednesday 10/28/20

Higher prices of food and medicines push inflation up

Inflation for energy (including fuels, electricity, gasoline) was -5.2% compared with one year ago.

Consumer prices increased by 0.2% in September, a low rate but which covers a very different evolution of the different components of the shopping cart.

According to Statistics Finland's data, in September consumer prices were raised most by increases in the prices of cigarettes, refundable prescription medicines, games of chance and wireless telephone services from one year ago. Inflation for food (including non-alcoholic beverages) was also much higher than the average (2%)

The rising of consumer prices from one year back was curbed most by reductions in the prices of fuels, hotel rooms and international flights, as well as decreases in average interest rate on housing loans. Inflation for energy (including fuels, electricity, gasoline) was -5.2% compared with one year ago.

Core inflation (excluding the most unstable elements such as food and energy) was 0.3% in September.

In August, inflation stood also at 0.2%. From August to September, the month-on-month change of consumer prices was 0%.

Inflation-September-2020Source: Statistics Finland.

Inflation -0.3% in euro area

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the euro area was -0.3% in September. The corresponding figure for Finland was 0.3%.

The Harmonised Index of Consumer Prices is calculated differently from national inflation. It 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.