Home > Statistics > Consumer price index > 2009 > September > Inflation -1.0 per cent in September

Published: 14 October 2009

Inflation -1.0 per cent in September

The year-on-year change in consumer prices, i.e. inflation, calculated by Statistics Finland fell to -1.0 per cent in September. In August it stood at -0.7 per cent. The decrease in consumer prices was accelerated mainly by the slowing down of the rise in food prices as well as reductions in interest rates and in liquid fuel prices.

In September, consumer prices were brought down most from the year before by reductions in interest rates and in liquid fuel prices. Inflation was also brought down by falls in the prices of owner-occupied dwellings and real estate, and used passenger cars. By contrast, consumer prices were pushed up most by year-on-year increases in restaurant and café prices, rents, and retail prices of alcoholic beverages.

From August to September, consumer prices went up by 0.2 per cent, primarily due to increases in the prices of clothing.

Each mid-month, Statistics Finland interviewers collect around 50,000 prices on 497 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.

Finland's inflation indicators, September 2009

	Point figure	Year-on-year change	Month-on-month change
Consumer Price Index 2005=100	108.5	-1.0%	0.2%
Cost-of-living Index 1951:10=100	1 732
Harmonised Index of Consumer Prices 2005=100	109.2	1.1%	0.3%
Harmonised Consumer Price Index at Constant Taxes 2005=100	108.8	0.9%	0.3%

According to preliminary data, inflation in the EMU countries was -0.3 per cent in September

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the EMU countries was -0.3 per cent in September. In August it stood at -0.2 per cent. The corresponding figure for Finland was 1.1 per cent in September.

The Harmonised Index of Consumer Prices does not include owner-occupancy, games of chance, interests on consumption and other credits or levies such as asset transfer tax and the vehicle tax. The consumption items included in the Harmonised Index of Consumer Prices as well the rules governing its compilation have been defined in EU regulations.

Eurostat's estimate of inflation in the EMU area is based on preliminary data from EMU Member States and on the price development of energy. Eurostat will publish detailed data on Harmonised Indices of Consumer Prices for September on 15 October.

The year-on-year change in the Harmonised Index of Consumer Prices at Constant Taxes was 0.9 per cent in September

The year-on-year change in the Harmonised Index of Consumer Prices was 1.1 per cent and that of the Index at Constant Taxes was 0.9 per cent in September. From September last year, prices rose by 0.2 per cent due to changes in commodity taxes and by 0.9 per cent for other reasons. The month-on-month change of both indices was 0.3 per cent in September. There were no changes in commodity taxes in September.

Statistics Finland started to publish a Harmonised Index of Consumer Prices at Constant Taxes in June 2009.In the Index at Constant Taxes the impact of the changes in the value added tax and other commodity taxes on inflation has been eliminated by keeping the taxes constant relative to the index base period. The index measures market inflation or the change in prices caused by reasons other than changes in commodity taxes. The price impact of the tax changes is obtained by comparing the development of the Harmonised Index of Consumer Prices and the Index at Constant Taxes.

The price impacts from the changes in commodity taxation that took effect in 2009 were as follows: Motorcycle tax went up in April, which pushed the prices of motorcycles up by 3.1 per cent. Tobacco tax rose in January, which caused a price impact of two per cent on tobacco.

Alcohol tax also went up in January 2009. According to the Harmonised Index of Consumer Prices the price of retail alcohol rose by 4.75 per cent and that of restaurant alcohol by 1.31 per cent in the December 2008 to January 2009 period. According to the Index at Constant Taxes, the price of retail alcohol rose by 0.24 per cent and that of restaurant alcohol by 0.05 per cent over the same period (market inflation, or change in prices due to reasons other than changes in taxes). The price impact due to changes in taxes is obtained as the difference of the development of the Harmonised Index of Consumer Prices and the Index at Constant Taxes. The upward impact on prices from the risen alcohol tax was 4.5 per cent for retail alcohol and 1.3 per cent for restaurant alcohol.

Source: Consumer Price Index 2009, September. Statistics Finland

Inquiries: Juhani Pekkarinen +358 9 1734 3476, Christina Telasuo +358 9 1734 3472
Harmonised Index of Consumer Prices and the Harmonised Index of Consumer Prices at Constant Taxes: Christina Telasuo +358 9 1734 3472
khi@stat.fi

Director in charge: Kari Molnar

Consumer price index 2009, September (pdf 245.4 kB)

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• Cost-of-living Index 1951:10=100 (14.10.2009)

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Last updated 14.10.2009