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Food prices in Finland remained steady in 2024, with the overall cost of food and non-alcoholic beverages increasing by just 0.5% in December compared to the previous year. Throughout the year, food prices showed no average annual change, contrasting with Finland’s overall inflation rate of 1.6%. Excluding non-alcoholic beverages, food prices declined by 0.5%, although costs remain about 20% higher than in 2021.
Individual food categories experienced varying price trends. Milk products saw a 2.4% price drop, meat fell by 1.4%, and cereal products declined marginally by 0.1%. In contrast, non-alcoholic beverages increased by 4.5%, and sweets such as chocolate, sugar, and jams rose by 3.7%, driven by global market pressures, including rising cocoa prices. Olive oil also registered significant price hikes.
The Finnish Consumer Price Index for December 2024 revealed a broader moderation in inflation, which averaged 1.5% for the year. December’s inflation rate stood at 0.7%, a substantial drop from the over 3% recorded at the start of the year. Contributing factors included an early-year spike from value-added tax adjustments, followed by a steady decline through summer.
Despite moderation in most areas, health service costs surged, with municipal health centre fees rising by 11% due to adjustments to maximum allowable fees. Hospital services experienced a similar 10% rise. Meanwhile, prescription medication prices fell by 9%, and non-prescription drugs dropped by 14% over five years.
Luxury Goods and Alcohol Drive Up Costs
High global commodity prices impacted luxury items, with chocolate prices increasing by 9% annually. Alcohol taxes further pushed up prices, with strong wines experiencing a 14% inflation rate, while spirits and tobacco each rose by 7%.
Energy prices, however, continued to fall. Diesel prices dropped by 7.7%, and petrol by 7.0%, reflecting ongoing declines since early 2022.
While food prices are expected to remain stable, other areas such as healthcare costs and luxury items may continue to pressure household budgets in 2025. Finland’s Pellervo Economic Research Institute (PTT) plans to release a detailed food price forecast in April.
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Source: www.helsinkitimes.fi
