Helsinki, April 15, 2024: The year-on-year inflation rate in Finland fell again in March to reach its lowest level in 31 months. The consumer price index rose by just 2.2% compared to March 2023, a significant decrease from the 3% increase in the previous month.
The decline in inflation was due to slower growth in mortgage interest rates and lower energy prices. Prices of food and non-alcoholic beverages also fell, by 1.7% year-on-year.
While this is positive news for consumers, inflation still remains above the European Central Bank’s (ECB) 2% target. The ECB is planning to raise interest rates in the coming months in response to rising prices in the eurozone.
Key Points:
- Inflation rate: 2.2% (year-on-year, March 2024)
- Lowest level: since August 2021
- Reasons for decline: Slower growth in mortgage interest rates and lower energy prices
- Food price decline: -1.7% (year-on-year)
- HICP: 0.6% (year-on-year)
- ECB: Plans to raise interest rates
Importance:
The decline in inflation in Finland is good news for consumers and the economy. Lower inflation means people can buy more goods and services for their money, which can lead to increased consumption and economic growth. However, the ECB will continue to monitor inflation closely and take monetary policy action if necessary.
Additional Notes:
- The decline in inflation in Finland is in line with the trend across the eurozone, where the inflation rate also slowed in March.
- Despite the decline in inflation, it remains above the ECB’s target of 2%.
- The ECB is planning to raise interest rates in the coming months in response to rising prices in the eurozone.
