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One percent inflation charted in June, slightly down from May

Increases in the prices of utilities, tobacco, rents, bank charges and house repairs were behind the inflation hike.

Ihmisiä rullaportaissa ostoskeskuksessa.
Prices of utilities and rents went up, while phones and cars grew cheaper. Image: Henrietta Hassinen / Yle

Finland's Consumer Price Index rose by one percent in the month of June, when compared to figures from the same month last year, according to Statistics Finland.

The country's inflation rate slowed down slightly in June, compared to a May consumer price index (CPI) of 1.2 percent and an April rate of 1.5 percent.

Increases in the prices of utilities, tobacco, rents, bank charges and house repairs were behind the year-on-year inflation rate hike, although price reductions were recorded for mobile phones, real estate, televisions and passenger cars in the same period.

The slight drop from May's figures is largely explained by lower petrol prices, according to the number crunching agency.

In order to come up with the EU's harmonized inflation figures, Statistics Finland collects 44,000 prices on nearly 470 commodities from approximately 2,700 outlets every month.

At the beginning of June, the Bank of Finland forecast an overall inflation rate of 1.3 percent for this year, picking up to 1.6 percent in 2021. The central bank says that 2.5-percent annual wage growth will gradually push up prices on services and contribute to further inflation in the country.

Neighbour country rates are higher

Comparative inflation figures from other countries in June 2019 include a 1.8 percent inflation rate in Sweden, 1.9 percent in Norway, and a 2.4 percent in Estonia. Each of these figures also showed a slight decrease on previous months.

The Harmonised Index of Consumer Prices shows that the rate of inflation in the entire euro area was 1.2 percent in June. The European Central Bank, whose main aim is to safeguard the value of the euro, has set an objective to keep the annual inflation rate index to below two percent.

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