Statistics Finland: deflation could be here

Zero inflation in May

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Inflation in May fell to zero in Finland. The decline has been sharp: still in April, consumer prices had risen 0.8 per from the same time the previous year.
      If the trend has continued into June, Finland would be in deflation, which would mean that consumer prices would actually be going down.
     
According to Statistics Finland, the decline in inflation in May was mainly caused by lower prices for foodstuffs, and declining interest rates. Fuel, real estate, and used cars also declined in price.
      Food prices started to come down only this spring; in May, they were still higher than a year earlier.
      Also rising in price were rents, restaurant and café services, alcoholic beverages, and health services.
     
The average inflation for the euro zone went down to zero from the 0.6 per cent level in May.
      However, the figures taken by Eurostat differ from those taken by Statistics Finland, in that the Eurostat figures exclude certain items, such as home ownership and interest rates.
      According to the methods used by Eurostat, the annual inflation rate in Finland was still at the level of 1.5 per cent in May.


Links:
  Statistics Finland

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