Rise in services prices has made Finland an expensive country

Abstract

Consumer prices have risen in Finland at a higher pace than in the euro area. This has eroded Finnish consumers' purchasing power and weakened the competitiveness of the economy. Of household expenditure, approximately 40% is services-related, and Finnish services prices, in particular, have risen at a relatively rapid pace. Since the financial crisis, domestic services prices have risen by over 10% compared with the euro area average. Finnish services price inflation has been the highest in the euro area.