Finland: Inflation continues to climb
October 14, 2010
In September, consumer prices rose 0.4% over the previous month, which mirrored the reading recorded in August. The monthly price increase was mostly driven by higher food prices (+1.3% month-on-month), in particular for vegetables. Moreover, a rise in prices for clothing and footwear (+5.1% mom) owing to the end of the summer sales, also contributed to the monthly price increase. As a result of the relatively high monthly figure, annual inflation continued to trend upwards, rising from 1.2% in August to 1.4% in September. In the same vein, annual inflation as measured by the harmonised index of consumer prices (HICP), stepped up from 1.3% in August to 1.4% in September, which drove up the annual average harmonised inflation rate a notch to 1.4%. In its most recent Economic Outlook Bulletin published in September, the Central Bank projects inflation to average 1.6% this year and to accelerate further to an average of 1.9% next year.