Finland: Inflation accelerates further
March 14, 2011
In February, consumer prices added 0.6% over the previous month, which came in above the 0.4% price rise recorded in January. The figure reflected higher prices for food and non-alcoholic beverages (+2.2% month-on-month) as well as for clothing and footwear (+2.6% mom). As a result, annual inflation accelerated for the eighth consecutive month, rising from 3.0% in January to 3.3%. Annual HICP inflation (based on the harmonised index of consumer prices) followed suit, rising from 3.1% in January to 3.5% in February, well above the European Central Bank's (ECB) target of close to, but below 2.0%. Owing to the robust reading, annual average HICP inflation inched up to 1.9%. In its most recent Economic Outlook Bulletin from October, the Central Bank projected HICP inflation to average 1.6% this year and to accelerate further to average 1.9% in 2012.