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Consumer prices exceeded expectations by rising by 5.8% in Finland in March - Nord News
Consumer prices exceeded expectations by rising by 5.8% in Finland in March

Consumer prices exceeded expectations by rising by 5.8% in Finland in March

Both YLE and Helsingin Sanomat emphasized in their reports that consumer prices have not risen at the same pace since 1990.

Jukka Appelqvistthe chief economist of the chamber of commerce pointed out press release that while diesel and gasoline prices are still the subject of most public inflationary debates, price increases have gradually become more common.

“Many individual products and services, from mobile phones to hotel accommodation, are also on the rise due to either demand pressures or production challenges,” he said.

Consumer prices rose not only from the previous year but also from the previous month, he added, 1.5 percent. The rise in the month was mainly due to the prices of petrol, clothing and prescription drugs.

High inflation is due to two global developments. Production facilities and supply chains have struggled to meet the peak of demand observed during the coronavirus pandemic and subsequent recovery. China’s recent new strict regional closure has exacerbated supply chain problems.

Another significant factor is the war in Ukraine. It has pushed up the prices of gas, oil and fuel even further.

Pasi KuoppamäkiChief Economist of Danske Bank, stated to the broadcaster that the effects of the war are increasingly visible in grocery stores as well. For example, coffee prices in March 2022 were almost 52 percent higher than in March 2021, According to Helsingin Sanomat.

“Russia and Ukraine are major grain producers. In addition, energy costs have a broader impact on agricultural production costs, he recalled. “Coronavirus [pandemic] and war are exceptional factors that have contributed to higher inflation than it has been for decades. “

Grocery buyers may also have noticed price increases in product groups such as fish, pears, margarine, edible oils and flour.

Prices for hotel accommodation, mobile phones and used cars have also risen, while prices for overseas cruises, air travel, day care services and cosmetics have fallen over the past 12 months, according to statistics.

Kuoppamäki reminded YLE that the old saying that inflation eases the debt burden of mortgage borrowers only applies if inflation exceeds wage increases – a scenario that is unlikely at least this year.

Treasury reported Last week, it estimates that consumer prices will rise by at least 4 per cent and wages by an average of 2.6 per cent in 2022. However, wage increases are expected to rise slightly faster than consumer prices in 2023.

Aleksi Teivainen – HT

Source: The Nordic Page

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