In Finland, consumer prices increased by 0.6 percent in June compared to a year ago, with a slight increase from May’s inflation rate of 0.5 percent. However, the cost of education rose the most at 7.9 percent, while food and non-alcoholic beverages became cheaper by 0.4 percent. Housing, water, electricity, gas, and other fuels decreased by 0.9 percent. Alcoholic beverages and tobacco were 4.3 percent more expensive compared to last year, and clothing and footwear saw a 3.4 percent increase in prices.
The harmonized consumer price index measures inflation without including owner-occupied housing, gambling, or interest on consumer loans. Despite the slow inflation rate in Finland, business economist Roope Ohlsbom suggests that the interest rate level set by the European Central Bank is still too high for Finland, leading to lower demand and falling below the inflation target.
In the Euro area, consumer prices rose by 2.5 percent year-on-year in June, with core inflation remaining at 2.9 percent. The recent inflation figures meet expectations, with a focus on service prices which have contributed to rising costs. However, the European Central Bank remains cautious about rate cuts despite ongoing pressure from core inflation. There is uncertainty about the future rate cuts in the euro area, with markets expecting one or two more cuts this year