Finland: Inflation reaches two-year high
January 14, 2011
In December, consumer prices added 0.5% over the previous month, exceeding both the 0.2% price rise observed in November and the 0.1% increase tallied in December 2009. The reading mostly reflected higher prices for transport (+1.5% month-on-month), due to higher prices for liquid fuels, as well as higher prices for food and non-alcoholic beverages (+0.7% mom). Owing to the price spike, annual inflation jumped to 2.9% (November: 2.5%), which represented the highest level since December 2008. Annual HICP inflation (as measured by the harmonised index of consumer prices) also rose from 2.4% in November to 2.8% in December, driving the annual average HICP inflation rate to 1.7%. In its most recent Economic Outlook Bulletin published in October, the Central Bank projects HICP inflation to average 1.6% this year and to accelerate further to average 1.9% next year.