Finland state

Inflation in Finland rises to 7.8% in June

INFLATION in Finland accelerated by 0.8 percentage point from the previous month to reach 7.8% in June, reports Statistics Finland.

Consumer prices have soared in particular for energy products but also for foodstuffs, the prices of fish having jumped by 46% and those of coffee, eggs and flour and groats by more than 30% since the beginning of the year.

“Since last December, prices for food and non-alcoholic beverages have increased by 10%, light fuel oils by 76%, diesel and gasoline by 42% and electricity by 22% – in less than six months, ” commented Kristiina Nieminensenior statistician at Statistics Finland.

Consumer prices are rising at a rapid pace also elsewhere in Europe. Eurostat’s harmonized consumer price indices indicate that inflation in the euro zone stood at 8.6% in June. US inflation, meanwhile, was 9.1% in June, its highest level in more than four decades.

Inflation in Finland has not been as high as it is now since March 1984, according to Jukka AppelqvistChief Economist of the Finnish Chamber of Commerce.

The key questions right now are how high the peak will be and how long it will take for inflation to slow to more normal levels, he said. While it is not entirely impossible that the peak was observed in June, he believes that it is more likely that consumer price inflation will continue to accelerate towards the fall.

“The pace will start to slow down at the end of the year and, more visibly, at the start of next year. Inflation is expected to remain at a higher level next year than we have become accustomed to in recent years,” said Appelqvist.

Aleksi Teivainen – HT