Helsinki, (Samajweekly) Finland’s inflation rate climbed to 8.8 per cent in February from 8.4 per cent in the previous month, according to a press statement published by Statistics Finland.
The acceleration of inflation during the first two months of the year was caused by surge in the average interest rate on housing loans and higher prices of district heating, the statistical authority said on Tuesday.
In February, Finnish consumers saw the biggest year-on-year increases in the price of electricity, the average interest rate on mortgages, and the interest rates on consumer loans. Downward pressure on prices came from prescription drugs and real estate.
The month-on-month change in consumer prices was 0.8 per cent, caused mainly by increase in the average interest rate on housing loans, Xinhua news agency reported.
Across-the-board price rises are a concern, and curbing inflation is a lengthy process, the Finland Chamber of Commerce said in a press statement issued on Tuesday.
“Inflation proved to be more persistent than expected, and the increase in consumer prices accelerated again,” Jukka Appelqvist, the chamber’s chief economist, added.
He said that price pressures have been steady and inflation looks set to remain sticky.
According to Appelqvist, the monthly inflation rate has been driven primarily by the increase in food prices and in the interest rates on mortgages.
Appelqvist said that one of the big economic risks is the possibility of a sharper-than-anticipated tightening of monetary policy.
“If the rise in consumer prices cannot be controlled, if interest rates rise more than expected, there may also be a deeper or longer recession.”
According to Statistics Finland, preliminary data shows that inflation in the eurozone was 8.5 per cent in February and 8.6 per cent in January.
