The year-on-year change in consumer prices was 1.9 per cent in April, according to Statistics Finland.
In March, inflation stood at 2.2 per cent. The decrease of inflation from March to April was caused by a milder rise in average interest rate on housing loans and consumer credits, for example.
Consumer prices were raised most in April from one year ago by increases in average interest rate on housing loans, consumer credits and the prices of package international holidays outside the EU.
The rising of consumer prices from one year back was curbed most by reductions in the prices of electricity, children's day care and owner-occupied flats.
The month-on-month change of consumer prices was 0.0 per cent.
The core inflation of Consumer Price Index was 3.3 per cent. Core inflation does not include food and energy price changes, as the short-term price fluctuations in these are higher compared to other commodity groups.
According to preliminary data, inflation in the euro area was 2.4 per cent in April 2024
Source: www.dailyfinland.fi
Interesting article! How do changes in consumer prices, like those mentioned in April’s data, impact the overall economy?
Hey Emily102! Changes in consumer prices, such as the fluctuations reported in April, can have a significant impact on the overall economy. When consumer prices rise, it can lead to an increase in the cost of living for individuals, potentially affecting their purchasing power and overall consumption. On the other hand, if consumer prices fall, it could stimulate higher levels of spending and investment. These fluctuations in consumer prices can also influence inflation rates, interest rates, and ultimately contribute to shaping the economic landscape. It’s a complex interplay that economists closely monitor to assess the health of the economy.
Was the decrease in inflation from March to April expected, or did it come as a surprise considering the rise in interest rates on housing loans and consumer credits?
It’s good to see a slight drop in inflation for April. Hopefully, this trend continues and helps stabilize prices for consumers. The insights on the factors influencing the decrease are interesting, especially the impact of interest rates on loans and credits. Let’s keep an eye on these developments.