Inflation continued to grow in June and rose to 7.9 percent, according to Statistics Finland. In May, the corresponding figure was 7.0 percent.
The upward trend was especially reflected in energy and food prices, says the number cruncher.
"Since December of last year, the prices of food and non-alcoholic beverages have risen by 10 percent, the prices of light fuel oil by 76 percent, the prices of diesel and gasoline by 42 percent, and electricity by 22 percent, i.e. in just six months." Chief Actuary of Statistics Finland Kristiina Nieminen told Yle.
Grocery store goods cost 10.9 percent more in June than in the same period last year.
At the same time, among coffee, fish, flour and eggs, prices rose the most.
Fresh fish eaters have to pay about 46 percent more for seafood than six months ago. Another Finnish food potato, the potato, is also becoming more expensive, and customers were charged about 22 percent more than a year ago.
In contrast, berries became more affordable than in June 2021, partly thanks to this season’s successful strawberry harvest.
Expensive food can lead to a less healthy diet
The rise in prices may cause Finns to make less healthy food choices, says the chief researcher of the Finnish Natural Resources Institute (Luke) Hanna-Maija Karikallio.
Cheaper products often have more fat, sugar and additives.
"A loyal meat eater probably eats meat, but because of the price increase, he may choose a cheaper meat product. Cheaper usually also means fattier," the researcher said and added that e.g. "Pork-beef mixed mince containing more than 20 percent fat is starting to reappear on store shelves after it had almost disappeared. We will definitely see more of this kind of transition."
In light of rising prices, consumers are also more likely to choose supermarket brand products, which are usually cheaper, but are often not domestic.
"In some product groups, the store’s label sales have increased by as much as 20โ30 percent," Director of the S group Sampo Top saw told Yle and added, however, that so far the weather has played a bigger role in consumer behavior than inflation.
End in sight?
The last time inflation accelerated faster in Finland was in March 1984, says the chief economist of the chamber of commerce. Jukka Appelqvist.
"It is not entirely impossible that the June numbers are the peak of this year’s inflation development. However, it is more likely that we will not see the highest numbers until the fall. After that, the pace should start to slow down at the end of the year and even more sharply at the beginning of next year. At the same time, inflation is expected to remain at a higher level next year than in recent years." Appelqvist said.
Source: The Nordic Page