Wednesday, 9 January 2008
Inflation : "Reverse Engineering" And Finnish Housing Market
So in November Statistics Finland has published a figure of 2.9% for the inflation. Yesterday they revised this figure to 2.2 % based on a new index, a reverse engineering exercise I have to say. What can you do? nothing just get used to the new index...:
"Revision to the publishing of 14.12.2007. The inflation calculated with the Harmonised Index of Consumer Prices (HICP) has been revised 8.1.2008 for November in Finland."
"According to the preliminary data on the Harmonized Index of Consumer Prices, the rate of inflation in the member states of the EMU was in November 3,0 per cent. It was 2.6 per cent in October. The corresponding figure for Finland was 2,21per cent in November."
The main image, shows the Finnish HICP for Housing , indicates clearly a slowdown in price growth: a 3% year on year growth. Still too high and still need to be readjusted. This year, if not in the next decade, will see a readjustment downward by a few percent every year : the so called "soft landing".
If the economy contract as suggested by the bond market and now by the stock market, the readjustment will be more painful.
Source: Statistics Finland, Eurostat HICP Housing , Eurostat HICP short guide