Finland’s inflation holds steady at 2.1% in July as building costs rise
Finland’s annual inflation rate remained unchanged at 2.1% in July, matching the level recorded in June, according to Statistics Finland (Yle reports). The stability in inflation was driven by rising consumer prices for gasoline, electricity, and diesel, which offset declines in the cost of owner-occupied housing and lower interest rates for consumer and student loans.
Core inflation, which excludes volatile food and energy prices, stood at 1.3% in July. Yle notes that this measure provides a clearer picture of underlying price trends by removing short-term fluctuations.
Meanwhile, building costs in Finland continued to climb, rising by 3.3% in July compared to the same period last year, Statistics Finland (Daily Finland) states. The increase was most pronounced in labour input costs, which jumped by 4.4%, while material costs rose by 2.5%. Among construction materials, the steepest price hikes were seen in heat, water, and sewer supplies (6.2%) and roofing materials (5.6%). In contrast, costs for soil and construction site surface structures fell by 2.1% and 0.8%, respectively. Service costs in the sector also increased by 3.1% year-on-year.
