Finland's inflation reaches a 60-year high In February consumer prices rose dramatically

Helsinki: In terms of annual growth, food prices in Finland experienced a historic increase of 16.3% last month, according to official data released on Tuesday. According to the nation's statistics agency, this figure represents the highest price growth since 1964.

According to data, the main causes of inflation on an annual basis were the high prices of food, electricity, and loans, as well as rising loan interest rates.

The report states that the core inflation rate which does not include the cost of food and energy has been rapidly increasing and reached 6.6% in February.

The persistence of inflationary pressures is a significant economic risk, according to Jukka Appelqvist, chief economist of Finland's Central Chamber of Commerce, even though prices may not continue to rise as quickly as they did in February.

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The official stated that there were no indications of a downward spiral of prices and wages that was out of control in the nation. A stable and low inflation rate, he cautioned, is not likely to materialise anytime soon.

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According to Appelqvist, the protracted tight monetary policy and rising interest rates could cause a recession that is worse than expected.

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The EU country entered a recession in the fourth quarter of last year as a result of GDP declining more than anticipated from the prior three months. According to official data, exports, investments, and consumption were the main causes of the decline.

The Finnish economy is expected to experience a mild recession this year before recovering in 2024, according to economists.