Inflation in Finland hits 60-year high

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According to official data released on Tuesday, food prices in Finland increased by a record 16.3% year on year last month. According to the country’s statistics agency, this is the highest rate of price growth since 1964.

According to data, the main drivers of annual inflation were the high cost of electricity, food, and higher loan interest rates.

The core inflation rate, which excludes food and energy prices, continued to rise sharply in February, reaching 6.6%.

According to Jukka Appelqvist, chief economist of Finland’s Central Chamber of Commerce, while prices may not rise as quickly as they did in February, the persistence of inflationary pressures is a major economic risk. The official stated that there was no evidence of an uncontrollable downward spiral of prices and wages in the country. He did, however, warn that a stable and low inflation rate is unlikely in the near future.

According to Appelqvist, prolonged tight monetary policy and rising interest rates could lead to a deeper recession than expected.

The EU nation entered a recession in the fourth quarter of last year after GDP fell more than expected from the previous three-month period. According to official data, the decline was led by exports, investments, and consumption.

Economists predict a mild recession in Finland this year, followed by a rebound in 2024.