The primary factors influencing national inflation in June were interest rates, maintenance charges, and district heating prices. Mortgage interest rates saw a substantial year-over-year increase of 30%, while consumer loan interest rates rose by 16.5%. Maintenance charges for owner-occupied apartments increased nearly 7% over the past year.

Notably, food prices have remained roughly at last year's levels.

"From May to June, prices increased the most for fresh vegetables, driven by the new potato season. Potato prices jumped by an average of 39%, and cabbage prices rose by 13%. Conversely, fresh fruit prices dropped by 3.6% from May. Coffee prices continue to fluctuate, with a 12.8% increase this month," explained Kristiina Nieminen, Chief Statistician at Statistics Finland.

"While overall inflation appears moderate, service prices continue to rise. The beginning of the holiday season is reflected in higher service sector prices. For instance, long-distance bus fares increased by 7%, international air travel by 8%, and ferry tickets by 9% in just one month. Amusement park tickets saw an average increase of 7%, and holiday cottage rentals surged by 12%," Nieminen added.

According to Nieminen, the introduction of stronger beers, ciders, and long drinks in retail has had little impact on the index.

"Completely new products cannot have their price developments calculated, so they are excluded from this measurement. The impact of previously available products now sold in retail on overall price development was negligible," she noted.

HT