"This is the highest rate since February 1991, when it was five percent," Christina Telasuo of Statistics Finland told YLE News. At that point, Finland was heading to a deep recession.
The factors driving the year-on-year rate up most were the costs of food and phone calls as well as fees for health care and child day care.
Within the food category, the fastest risers were dairy products, meat and grains. Also rising this year were prices for alcohol, and servings at restaurants and cafés.
Meanwhile, prices declined for cars and entertainment electronics.
The month-on-month rise in prices from July to August was four tenths of a percent. According to the central statistics office, this was due to the end of summer clothing sales, higher health care fees and interest rates.
Katainen: Wages can dampen prices
Conservative Finance Minister Jyrki Katainen is stressing the role of wage policy as a factor to keep inflation in check.
Katainen said on Monday that the sharp consumer price rise in August was unpleasant news, by that he believes the peak in inflation has been passed. He added the view that in future wage policies will have a key role in keeping inflation down.
"We can't do anything about international inflation, but with the right wage policy, we can keep domestic prices in check," said the Finance Minister.