Inflation hits 40-yr high in Finland in 2022: Statistics

Consumer prices rose by an average of 7.1 per cent in Finland in 2022, the highest increase in 40 years, Statistics Finland said.

“Inflation in 2022 was exceptional compared to … past decades. Similar figures were last seen in the early 1980s,” said Kristiina Nieminen, chief actuary at Statistics Finland.

The previous inflation record for the 21st century was set during the global financial crisis in 2008, when consumer prices rose by an average of 4.1 per cent.

Nieminen said that the current increase in consumer prices began in the second half of 2021, and subsequently the Ukraine crisis and related international sanctions meant prices began to rise steadily in May, peaking in December last year.

Inflation in 2022 was mainly accelerated by an increase in loan interest rates, and surging food and energy prices.

However, due to declining fuel prices the monthly change in consumer prices from November to December was only -0.1 per cent, according to the Finnish statistical agency.

The year-on-year change in consumer prices calculated by Statistics Finland was 9.1 per cent in December. Meanwhile, in November inflation also stood at 9.1 per cent.

Based on current price developments, Nieminen said that a legacy of inflation would be carried over from 2022 to 2023. “If nothing changed, this year’s average inflation would be around 3.5 per cent,” she added.

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