Finland: Harmonized inflation drops to near three-year low in November
Harmonized inflation dropped to 0.7% in November, following October’s 2.4%. November’s figure marked the weakest inflation rate since December 2020. Looking at the details of the release, the deceleration was driven by moderating price pressures for food and non-alcoholic beverages and easing price pressures for housing and utilities. Moreover, prices for recreation grew at a more subdued pace.
Accordingly, the trend pointed down, with annual average harmonized inflation falling to 5.0% in November (October: 5.7%). Meanwhile, consumer price inflation fell to 3.3% in November, from the previous month’s 4.9%.
Finally, harmonized consumer prices fell 0.50% over the previous month in November, swinging from the 0.23% increase recorded in October. November’s result marked the weakest reading since August.
November’s print marked the first time that harmonized inflation fell below the ECB’s 2.0% target since August 2021. The lagged effects of restrictive monetary policy this year and a more challenging base of comparison will keep a lid on inflation in the coming months.