The rate of inflation in Finland has reached its highest point in the past 60 years.
In February, food, electricity, and mortgage costs all went up, which drove up consumer prices.
Last month, food prices in Finland rose by 16.3% on an annual basis, which is an all-time high. This was reported by the government on Tuesday. The country’s statistics agency said that this is the highest rise in prices since 1964.
Data showed that the main reasons for inflation on an annual basis were the high cost of electricity, food, and loans and the rise in loan interest rates.
According to the report, the core inflation rate, which doesn’t include prices for food and energy, kept going up quickly and hit 6.6% in February.
The chief economist of Finland’s Central Chamber of Commerce, Jukka Appelqvist, said that even though prices might not rise as quickly as they did in February, the fact that inflationary pressures are still strong is a major economic risk.
The official said that there were no signs that prices and wages were falling in a way that could not be stopped. But he said it was unlikely that inflation would stay low and stable in the near future.
Appelqvist said that a long period of tight monetary policy and rising interest rates could cause a recession that is worse than expected.
In the fourth quarter of last year, the EU country went into recession because its GDP had dropped more than expected from the previous three-month period. Official data shows that exports, investments, and consumption were the main causes of the drop.
Economists think that the Finnish economy will go into a mild recession this year and then start to grow again in 2024.