Finland: Inflation accelerates in February from the prior month
Latest reading: Harmonized consumer prices were up 1.8% on a year-on-year basis in February, following a 1.1% rise in the prior month.
Relative to the prior month’s data, there were higher price pressures for transportation (0.0% in annual terms vs -0.2% in January), housing and utilities (+3.7% vs +0.6% in January), recreation (+2.0% vs +1.6% in January) and restaurants and hotels (+2.6% vs +2.1% in January). In contrast, price pressures reduced for food and non-alcoholic beverages in February (+1.4% vs +1.7% in January).
Meanwhile, consumer prices increased 0.6% on a year-on-year basis in February, following a 0.2% fall in the previous month.
Lastly, harmonized consumer prices rose 1.21% in February on a month-on-month basis, following a 0.12% decline in the previous month.
Panelist insight: Fitch Solutions analysts stated:
“We expect inflation to accelerate moderately over the coming months, reflecting higher electricity and petrol prices along with VAT changes. Price growth in the industrial sector is also strengthening as base metal costs increase and the economic cycle turns upward, although the appreciation of the euro will curb the rise in import prices. Although borrowing costs remain elevated, there is considerable risk that inflation will rise more than currently projected if the oil price surge linked to the US Iran conflict persists longer than assumed in our baseline.”