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Published: 14 August 2013

Inflation 1.6 per cent in July

The year-on-year change in consumer prices, i.e. inflation, compiled by Statistics Finland accelerated to 1.6 per cent in July. In June, it was 1.4 per cent. The slight acceleration in inflation was above all due to increases in the prices of prescription medicines.

Inflation indicators in Finland, July 2013

	Point figure	Change on one year	Change on one month
Consumer Price Index 2010=100	107,9	1,6 %	-0,0 %
Cost-of-living Index 1951:10=100	1 891
Harmonised Index of Consumer Prices 2005=100	120,4	2,5 %	-0,0 %
Harmonised Index of Consumer Prices at Constant Taxes 2005=100	117,8	1,8 %	-0,0 %

More than one-half of the inflation in July was caused by increases in food prices. Food prices went up in the year particularly due to higher prices of vegetables, meat and dairy products. Increases in restaurant prices, transport prices, prices of housing services, and prices of prescription medicines, as well as increases in rents also affected inflation. The rising of consumer prices was curbed most in July by fallen interest rates and prices of telecommunication services from the year before. From June to July, consumer prices remained unchanged on the average.

Each mid-month, Statistics Finland's interviewers collect altogether around 50,000 prices on 486 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. The Consumer Price Index 2010=100 Handbook for Users is available on the CPI-home page (www.stat.fi).

According to preliminary data, inflation in the euro area remained at 1.6 per cent in July

According to the preliminary data on the Harmonised Index of Consumer Prices, the rate of inflation in the euro area was in July the same as in June, i.e. 1.6 per cent. The corresponding figure for Finland was 2.5 per cent in July.

The Harmonised Index of Consumer Prices does not include owner-occupancy, games of chance, interests on consumption and other credits, fire insurance on owner-occupied dwellings or 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 the Member States and on the price development of energy. Eurostat will publish detailed data on Harmonised Indices of Consumer Prices for July on 16 August. Information of inflation in EU countries is available on Eurostat homepage, eurostat (http://ec.europa.eu/eurostat).

The year-on-year change in the Harmonised Index of Consumer Prices at Constant Taxes was 1.8 per cent in July

The year-on-year change in the Harmonised Index of Consumer Prices stood at 2.5 per cent in July and that in the Index at Constant Taxes measuring market inflation at 1.8 per cent. Over twelve months, the combined raising impact on consumer prices from changes in commodity tax rates was thus 0.7 percentage points. The month-on-month change in both the Harmonised Index and the Index of Consumer Prices at Constant Taxes was 0.0 per cent in July. There were no changes in tax rates in July.

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 Harmonised Index of Consumer Prices (HICP) consists of value added or other taxes. The Harmonised Index of Consumer Prices at Constant 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, Johanna Leivo 09 1734 3397, khi@stat.fi

Director in charge: Leena Storgårds

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Appendix tables

• Appendix table 1. Consumer Price Index 2010=100 by commodity groups (14.8.2013)
• Appendix table 2. Cost-of-living Index 1951:10=100 (14.8.2013)
• Appendix table 3. Year-on-year changes in the Consumer Price Index, per cent (14.8.2013)
• Appendix table 4. Consumer Price Index 2000=100 (14.8.2013)
• Appendix table 5. Consumer Price Index 2005=100 (14.8.2013)

Figures

• Appendix figure 1. Annual change in the Consumer Price Index and the Harmonised Index of Consumer Prices, January 2001 - July 2013 (14.8.2013)
• Appendix figure 2. Goods and services with the largest impact on the year-on-year change in the Consumer Price Index, July 2013 (14.8.2013)
• Appendix figure 3. Annual change in the Harmonised Index of Consumer Prices and the Harmonised Index of Consumer Prices at Constant Taxes, January 2007 - July 2013 (14.8.2013)
• Appendix figure 4. Harmonised Index of Consumer Price Index 2005=100; Finland, Euro area and EU (14.8.2013)

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Updated 14.8.2013