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Published: 14 August 2020

Inflation 0.6 per cent in July

The year-on-year change in consumer prices calculated by Statistics Finland was 0.6 per cent in July. In June, inflation stood at -0.0 per cent. The increase in inflation was caused by higher prices of cigarettes, for example. Higher cigarette prices were caused mainly by tax changes.

Inflation indicators in Finland, July 2020

	Point figure	Annual change (%)	Monthly change (%)
Consumer Price Index 2015=100	103.7	0.6	0.4
Cost-of-living Index 1951:10=100	1976
Harmonised Index of Consumer Prices 2015=100	104.1	0.7	0.3
Harmonised Index of Consumer Prices at Constant Taxes 2015=100	103.1	0.5	0.2

Consumer prices were raised most in July by increases in the prices of cigarettes, games of chance and refundable prescription medicines from one year ago. The rising of consumer prices from one year back was curbed most by reductions in the prices of fuels and hotel rooms, as well as decreases in average interest rate on housing loans. From June to July, the month-on-month change of consumer prices was 0.4 per cent, which was caused mainly by higher prices of games of change and petrol.

Core inflation (inflation excl. food and energy) was 0.8 per cent in July. Inflation on food (incl. non-alcoholic beverages) was 2.9 per cent in July and inflation on energy (incl. fuels, electricity, petrol) -6.2 per cent.

Each mid-month, Statistics Finland's interviewers collect altogether 21,000 prices on nearly 470 commodities from approximately 2,200 outlets for the Consumer Price Index. Price data is supplemented with scanner data including around 3 million prices. In addition, some 1,000 items of price data are gathered by centralised collection.

According to preliminary data, inflation in the euro area was 0.4 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 0.4 per cent in July. The final euro area inflation for June was 0.3 per cent. The corresponding figure for Finland was 0.7 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, the vehicle tax or fishing and hunting fees. 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 19 August. Information of inflation in EU countries is available on Eurostat homepage , (http://ec.europa.eu/eurostat/web/main).

The year-on-year change in the Harmonised Index of Consumer Prices at Constant Taxes was 0.5 per cent in July

The year-on-year change in the Harmonised Index of Consumer Prices stood at 0.7 per cent in July and that in the Index at Constant Taxes measuring market inflation at 0.5 per cent. Over twelve months, the combined raising impact on consumer prices from changes in commodity tax rates was thus 0.2 percentage points. In July, taxes on tobacco were raised. The month-on-month change in the Harmonised Index of Consumer Prices was 0.3 per cent and that in the Index at Constant Taxes 0.2 per cent 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: Kristiina Nieminen 029 551 2957, Hannele Markkanen 029 551 3358, khi@stat.fi

Director in charge: Jan Nokkala

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Appendix tables

• Appendix table 1. Consumer Price Index 2015=100 by commodity groups (14.8.2020)
• Appendix table 2. Consumer Price Index 2015=100 by commodity groups, monthly and annual changes (14.8.2020)
• Appendix table 3. Cost-of-living Index 1951:10=100 (14.8.2020)
• Appendix table 4. Year-on-year changes in the Consumer Price Index, per cent (14.8.2020)
• Appendix table 5. Consumer Price Index 2010=100 (14.8.2020)
• Appendix table 6. Consumer Price Index 2005=100 (14.8.2020)
• Appendix table 7. Harmonised Index of Consumer Prices 2015=100 by commodity groups (14.8.2020)

Figures

• Appendix figure 1. Annual change in the Consumer Price Index and the Harmonised Index of Consumer Prices, January 2001 - July 2020 (14.8.2020)
• Appendix figure 2. Goods and services with the largest impact on the year-on-year change in the Consumer Price Index, July 2020 (14.8.2020)
• 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 2020 (14.8.2020)
• Appendix figure 4. Harmonised Index of Consumer Price Index 2015=100; Finland, euro area and EU (14.8.2020)

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Updated 14.8.2020