The most expensive country in the euro area

Abstract

In the years since the financial crisis and up until recent months, domestic consumer prices have risen at a higher pace than in the euro area, and Finland is currently the most expensive country in the euro area as measured by consumer prices. The elevated price level erodes consumers’ purchasing power, while the rapid increase in prices weakens the cost-competitiveness of Finnish export industries. Compared with the rest of the euro area, the price rise has been particularly rapid for commodities with large components of labour costs and indirect taxes.