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Housing, Fuel Push Inflation to Six-Year High

Consumer prices have risen to their highest level in six years. Most of the rise is attributed to increases in fuel and housing costs, as well as telephone costs.

Figures for March released on Friday by Statistics Finland show an inflation rate of 2.6, after rising 2.2 percent in February.

The highest price rise was due to housing costs, which in turn were pushed up by higher interest rates for home loans, higher real estate prices and rents, as well as steeper electricity prices.

Among the areas where prices declined since March of 2006 were electronic entertainment and data processing devices, prescription drugs and used cars.

Labour Warns of Wage Pressures

Finland's biggest labour federation, the SAK, says that the faster rate of inflation increases pressures for wage hikes. The blue-collar federation's chief economist, Olli Koski, said that this will be particularly true if contracts are negotiated on a sector-by-sector basis this autumn instead of the traditional centralised wage agreement.

Sources: YLE