Inflation increases slightly in August

The year-on-year change in consumer prices calculated by Statistics Finland was 0.7 per cent higher in August this year.

In July, inflation stood at 0.5 per cent. The slight increase in inflation was caused by a rise in the prices of detached houses, said a press release of the Statistics Finland.

Consumer prices were raised most in August from one year ago by increases in the consumer prices of electricity, petrol and cigarettes and the vehicle tax.

The rising of consumer prices from twelve months ago was curbed most by reductions in prices of mobile phones, games of chance and used cars, as well as decreases in housing loan interest rates.

From July to August, consumer prices changed by 0.3 per cent, which was mainly caused by price increases in vegetables and clothes.

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.

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the euro area was 1.5 per cent in August. In July, it was 1.3 per cent. The corresponding figure for Finland in August was 0.8 per cent.

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.