Inflation climbs to 7.8% in June

The year-on-year change in consumer prices in Finland was 7.8 per cent in June, according to Statistics Finland.

In May, inflation stood at 7.0 per cent.

Consumer prices were raised most in June by increases in the prices of petrol, electricity, diesel, and capital repair on detached houses from one year ago.

The rising of consumer prices from one year back was curbed most by reductions in the prices of children’s day care, non-refundable prescription medicines, regular ferry service, medical examination and treatment fees and redemption of documents.

The month-on-month change of consumer prices was 0.7 per cent, which was caused by higher prices of petrol compared to previous month, for example.

News agency Xinhua adds: "Since December last year, the prices of food and non-alcoholic beverages have risen by 10 percent, light fuel oil by 76 percent, diesel and gasoline by 42 percent, and electricity by 22 percent -- that is, in just six months," senior statistician Kristiina Nieminen said in a press release.

According to Nieminen, fresh fish has become 46 percent more expensive in six months, while prices for flour, coffee and eggs have gone up by at least 30 percent.

Jukka Appelqvist, chief economist of the Finnish Chamber of Commerce, told News Agency (STT) that the last time inflation in Finland grew at a faster pace was in March 1984.

"It is still more likely that the highest inflation readings will be measured in the fall. After that, the pace starts to slow down at the end of the year and even more clearly at the beginning of next year. Expectedly, inflation will remain at a higher level next year than we have been used to in recent years," Appelqvist said.

Markku Lehmus, head of forecasting at the economic institute ETLA, said that current high inflation would only mean temporary caution in consumer behavior, adding that the purchasing power of Finnish consumers has developed well in recent years.