Finland Inflation (HICP, ann. var. %, eop)

Harmonized inflation holds steady in February

Harmonized inflation came in at 7.9% in February, unchanged from January’s result. February’s figure represented the highest inflation rate since December 2022. The result was largely due to softening price pressures for transport offsetting stronger price growth for food and non-alcoholic beverages.

Nevertheless, the trend pointed up, with annual average harmonized inflation coming in at 7.8% in February (January: 7.5%). Meanwhile, consumer price inflation rose to 8.8% in February, from the previous month’s 8.4%.

Lastly, harmonized consumer prices increased 0.65% over the previous month in February, picking up from January’s 0.55% increase.

Analysts at the EIU commented on the outlook:

“We expect inflation to decelerate in 2023, to a still high 5.7%, as economic growth cools sharply and weakens consumption trends. Despite the government subsidies to households, energy costs will remain high, gradually feeding into structural core inflation.”