According to the latest data released by Statistics Finland, the year-on-year change in consumer prices reached 7.9% in April. This figure remains unchanged from the previous month, reflecting a continued surge in inflationary pressures.
Several key factors contributed to the increase in consumer prices in April compared to the same period last year. Notably, rises in the average interest rate on housing loans, electricity prices, and consumer credits played a significant role in driving inflation higher. On the other hand, reductions in the prices of petrol, diesel, and owner-occupied flats helped to mitigate the overall rise in consumer prices.
The month-on-month change in consumer prices stood at 0.3%, primarily influenced by increases in the average interest rate on housing loans. These price fluctuations demonstrate the ongoing impact of various economic factors on inflation.
When examining the core inflation of the Consumer Price Index, which excludes food and energy price changes, the rate reached 7.2%. This exclusion is due to the higher short-term price fluctuations observed in these categories compared to other commodity groups.
Preliminary data from Eurostat reveals that inflation in the euro area stood at 7.0% in April 2023, slightly higher than the previous month’s figure of 6.9%. Finland, on the other hand, recorded an inflation rate of 6.3% in April, as measured by the Harmonised Index of Consumer Prices (HICP).
The Harmonised Index of Consumer Prices, which does not include certain items such as owner-occupancy, games of chance, and interests on consumption, provides a standardized measure of inflation across the European Union. Detailed data on Harmonised Indices of Consumer Prices for April will be published by Eurostat on May 17.
Additionally, the year-on-year change in the Harmonised Index of Consumer Prices at Constant Taxes, which measures market inflation, was 6.7% in April. Over the course of twelve months, changes in commodity tax rates resulted in a combined negative impact of -0.4 percentage points on consumer prices. The month-on-month change in the Harmonised Index of Consumer Prices and the Index at Constant Taxes was both 0.1% in April.
The continued rise in consumer prices and the persistence of inflationary pressures underscore the challenges faced by individuals and households in managing their expenses. As inflation rates remain elevated, consumers are likely to experience higher costs for goods and services, impacting their purchasing power and overall financial well-being.
For more detailed information on inflation indicators and consumer price indices, please refer to the official release from Statistics Finland and Eurostat’s forthcoming report on Harmonised Indices of Consumer Prices.