FX.co ★ Finland's Economy Expands Further, Inflation Rises Slightly

In the third quarter ending in September, Finland's economy continued its growth trajectory, marking the third consecutive quarter of expansion. At the same time, inflation exhibited a slight uptick, driven by rising electricity prices, according to reports released by Statistics Finland on Thursday.

The country's gross domestic product (GDP) increased by 0.4 percent on a seasonally and working-day-adjusted basis in the third quarter. This follows a revised growth of 0.1 percent in the second quarter.

However, in September, the national economy's output saw an annual decline of 1.1 percent, contrasting with the 2.1 percent growth in August. This marked the first decrease in four months.

Breaking it down by sector, secondary and tertiary activities declined by approximately 2.7 percent and 0.5 percent, respectively, compared to the same period last year. In contrast, the primary sector experienced a 4.7 percent growth.

On a month-to-month basis, GDP fell by 1.4 percent in September, following a 0.6 percent rise in August.

Further official data indicated that consumer price inflation in Finland climbed to 1.1 percent in September, up from 0.8 percent in August, as indicated by flash data. Excluding food and energy, core inflation was recorded at 1.7 percent.

The increase in inflation from September to October was attributed to elevated electricity prices, the agency noted.

Additionally, housing and utility costs rose by 1.0 percent, and clothing prices increased by 0.6 percent. Meanwhile, transport costs decreased at a slower rate of 2.1 percent.