Sunday 8/9/20
INFLATION

Consumer prices rose in June as the economy gradually reopened

Core inflation, which excludes the prices of the most volatile items such as food and energy, was 0.3% in June.
Consumer prices rose in June as the economy gradually reopened

Prices of goods and services rose 0.2% in June compared to May, while the Finnish economy gradually reopened after the coronavirus lockdown. In annual terms, the inflation rate remained stable.

According to Statistics Finland, the year-on-year change in consumer prices was -0.0 per cent in June. In May, annual inflation stood at -0.2%.

Consumer prices were raised most in June by increases in the prices of cigarettes, long-distance train journeys, long-distance passenger transport by coach and children's day care from one year ago.

By contrast, the rising of consumer prices from one year back was curbed most by reductions in the prices of petrol, hotel room, diesel and light fuel oil.

From May to June, the month-on-month change of consumer prices was 0.2%, which was caused mainly by higher prices of petrol.

Inflation-indicators-finland-June

Source: Statistics Finland.

The core inflation

Core inflation (excluding the prices of the most volatile items such as food and energy) was 0.3% in June. Inflation on food (including non-alcoholic beverages) was 2.4% in June and inflation on energy (including fuels, electricity, petrol) -8.3%.

Each mid-month, Statistics Finland's interviewers collect altogether 44,000 prices on nearly 470 commodities from approximately 2,700 outlets for the Consumer Price Index.

Price data is supplemented with scanner data including around 3 million food prices. In addition, some 1,000 items of price data are gathered by centralised collection.

In the 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 June. The final euro area inflation for May was 0.1%. The corresponding figure for Finland was 0.0 per cent in June.

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.

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.

Comments