The annual change in consumer prices fell below one percent in September, but the impact of the VAT increase was seen in October.

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Finland’s inflation rate was 1.5 percent in October, according to preliminary data from Statistics Finland on Thursday.

The figure reflected a slight increase from September, when rate fell below 1 percent.

The increase was mainly driven by an increase in the prices of alcoholic beverages and tobacco, which rose by 5.3% compared to the same month last year. In addition, housing, water, electricity and energy costs have also increased compared to October 2023 by three percent.

Statistics Finland noted last month that the inflation rate could rise above 1% again in October as a result of an increase in the general value added tax (VAT) rate, which it rose from 24% to 25.5% in early Septemberit would become obvious.

Statistics Finland compiles the data into a harmonized index of consumer prices, which is defined by EU regulations.

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