Inflation in Finland accelerated to 8.3 percent in October

The average interest rates for both housing and consumer loans are higher than before, the former 67 percent and the latter 24 percent from the previous year.

Kristiina Nieminensenior statistician from , reminded that interest rates were expected to rise as a result of the reference rate hikes initiated by the European (ECB). “However, it is good to keep in mind that interest rates will remain relatively low,” he added.

The rise in interest rates on mortgages had an estimated effect of around 0.5 percentage points on in October Hannu Nummiaro, Lähi-Tapiola’s economist. “Technical first raises a little [inflation] before lowering it by curbing aggregate demand,” he explained on .

According to Statistics , the biggest factor that slowed down inflation was the 3.2 percent drop in prescription drug prices. However, the prices of only 20 commodities decreased in October from the previous year.

on Monday wrote that continued to rise rapidly in October and were almost 15.9 percent higher than in October 2021. Food prices are currently rising at a rate that is by far the fastest in the 21st century and unprecedented since the energy crisis of the 1970s and early 1980s, said Nieminen.

The food items that have increased the most over the past year are flour (46%), eggs (37%) and coffee (34%).

Jukka AppelqvistThe chief economist of the Chamber of Commerce drew attention to the 15.7 percent increase in the prices of food and non-alcoholic beverages during the past year. The most alarming aspect of the inflation data is that consumer prices continue to rise across different commodity categories.

He predicted that food and electricity will continue to drive inflation for several months, with no signs of a slowdown in sight.

“While gasoline prices have fallen significantly from last summer’s peak, they have replaced other chronic inflation drivers that won’t let up anytime soon,” analyzed Appelqvist.

The so-called core inflation, i.e. the price increase of goods and services without food and energy, was 5.1 percent in October.

“High core inflation is an indication of broad-based price pressures – namely that price increases are embedded relatively deeply in the economic system and are no longer explained by any single factor or small group of commodities,” he said.

Aleksi Teivainen – HT

Source: The Nordic Page

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