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Published: 14 January 2011

Inflation accelerated to 2.9 per cent in December

The year-on-year change in consumer prices, i.e. inflation, calculated by Statistics Finland accelerated to 2.9 per cent in December. In November, it stood at 2.5 per cent. Inflation speeded up primarily due to risen prices of liquid fuels. The average inflation rate in 2010 was 1.2 per cent.

Inflation indicators in Finland, December 2010

	Point figure	Change on one year	Change on one month
Consumer Price Index 2005=100	111,3	2,9 %	0,5 %
Cost-of-living Index 1951:10=100	1 777
Harmonised Index of Consumer Prices 2005=100	112,1	2,8 %	0,5 %
Harmonised Index of Consumer Prices at Constant Taxes 2005=100	111,8	2,5 %	0,5 %

In December, consumer prices were pushed up most from the year before by increases in the prices of liquid fuels, owner-occupied dwellings and real estate, food, non-alcoholic beverages and electricity. Inflation was also influenced by rent increases, and risen prices of cultural and recreational services, clothing and tobacco from December 2009. Inflation was curbed most in December 2010 by fallen passenger air transport prices and interest rates from the year before.

From November to December, consumer prices went up by 0.5 per cent. This was mostly due to risen prices of liquid fuels.

Each mid-month, Statistics Finland interviewers collect altogether 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. Consumer Price Index 2005=100 Handbook for Users on this statistics is found at the CPI-home page (www.stat.fi).

According to preliminary data, inflation in the euro area was 2.2 per cent in December

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the euro area was 2.2 per cent in December. In November, it stood at 1.9 per cent. The corresponding figure for Finland in December was 2.8 per cent.

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 as the rules governing its compilation have been defined in EU regulations.

Eurostat’s estimate of inflation in the euro 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 December on 14 January. Information of inflation in EU countries is available on Eurostat homepage, eurostat (http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/).

The year-on-year change in the Harmonised Index of Consumer Prices at Constant Taxes was 2.5 per cent in December

The year-on-year change in the Harmonised Index of Consumer Prices thus stood at 2.8 per cent in December and that in the Index at Constant Taxes measuring market inflation at 2.5 per cent. Over twelve months, the combined raising impact on consumer prices from changes in commodity tax rates was 0.3 percentage points. The month-on-month change in both the Harmonised Index and the Index of Consumer Prices at Constant Taxes was 0.5 per cent in December. There were no changes in tax rates in December.

Harmonised Index of Consumer Prices at Constant Taxes

The inflation measured by Consumer Price Index consists mainly of products and services priced by enterprises and the public sector, and value added and commodity taxes. Some 25 per cent of the private consumption described by the HICP consists of value added or other taxes. HICP-CT is based on the HICP so the two indices have the same weight structure and price data. HICP-CT is calculated with a method which holds the tax rate constant relative to the reference period. When tax changes take place, the impact of the tax change on commodity prices is eliminated from HICP-CT. The price impact of the tax changes is obtained by comparing the development of the HICP and HICP-CT.

Source: Consumer Price Index, Statistics Finland

Inquiries: Juhani Pekkarinen (09) 1734 3476, Christina Telasuo (09) 1734 3472, khi@stat.fi

Director in charge: Kari Molnar

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Appendix tables

• Appendix table 1. Consumer Price Index 2005=100 by commodity groups (14.1.2011)
• Appendix table 2. Cost-of-living Index 1951:10=100 (14.1.2011)
• Appendix table 3. Year-on-year changes in the Consumer Price Index (14.1.2011)
• Appendix table 4. Consumer Price Index 2000=100 (14.1.2011)

Figures

• Appendix figure 1. Annual change in the Consumer Price Index and the Harmonised Index of Consumer Prices, January 2001 - December 2010 (14.1.2011)
• Appendix figure 2. Goods and services with the largest impact on the year-on-year change in the Consumer Price Index, December 2010 (14.1.2011)
• Appendix figure 3. Annual change in the Harmonised Index of Consumer Prices and the Harmonised Index of Consumer Prices at Constant Taxes, January 2007 - December 2010 (14.1.2011)
• Appendix figure 4. Harmonised Index of Consumer Price Index 2005=100; Finland, Euro area and EU (14.1.2011)

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Updated 14.1.2011