Interest rate hike pushes up inflation

The inflation rate in Finland climbed to 8.3 percent in October 2022 on a year-on-year basis, according to data published by Statistics Finland on Monday, reported Xinhua.

The spike in the interest rate has further accelerated inflation in the country, the statistics agency said. In addition to soaring energy prices, the average interest rate on mortgages and consumer loans has also increased.

Compared to last year, interest rates on mortgages rose by 67 percent, while rates on consumer loans rose by 24 percent, said Statistics Finland.

Among the annual changes in consumer prices, domestic and international air travel prices rose the most in October this year, by 14.7 percent and 23.9 percent respectively.

Prices for food and non-alcoholic beverages have increased by 15.7 percent over last year's same period.

For basic foodstuffs, increases are even higher. Prices for flour, eggs, coffee, and butter have gone up the most, with the cost of flour climbing by 46 percent, and other items by more than 30 percent.

National broadcaster Yle reported on Monday that food prices rose last month at the fastest rate since Finland joined the EU in 1995.

Meanwhile, annual changes in energy prices in October were 69 percent for light fuel oil, 33 percent for diesel, 15 percent for gasoline, and 41 percent for electricity.

Price hikes will continue on a broad scale, and show no sign of slowing down, said chief economist at Finland's Chamber of Commerce Jukka Appelqvist on Monday.

However, Appelqvist said that from a long-term perspective, some kind of relief measure is in store. Inflation in Finland is unlikely to be significantly higher than current levels, he added.