Economic growth in Finland declined slightly in June. According to fresh data from Statistics Finland, the economy contracted by 0.7 percent in June compared to one year earlier and declined by 1.3 percent from the previous month, May.
The last time GNP was in negative territory was in June 2011.
Figures issued Tuesday also revised growth in May downwards from 0.3 percent to 0.2 percent.
Strong retail sector growth
Meanwhile the state statisticians reported nearly six percent growth in the retail sector in June compared to the same month last year.
Consumer goods sales were up 5.9 percent in June, while department store trade increased 5.8 percent in June this year against the same period last year.
Inflation inches up in July
Meanwhile inflation in July came in at 2.9 percent compared to July 2011. In June, the year-on-year increase in prices stood at 2.8 percent.
Statistics Finland said rising prices for food, housing, transport, alcohol and tobacco were behind the growth in inflation.
Food prices were affected by higher bills for meat, vegetables, confectionery and ice cream, and non-alcoholic beverages.
Housing prices rose as a result of the higher cost of rents and maintenance charges, while transport prices were pushed up by higher prices at the pump and an increase in the vehicle tax.
Factors placing a drag on rising prices included lower interest rates, and falling prices for overseas package tours, electricity and mobile communications services. Clothing sales forced inflation down 0.2 percent between June and July.
Inflation constant in euro area
At the end of July inflation in the euro area based on the Harmonised Index of Consumer Prices was estimated at 2.4 percent, the same as in June, and slightly above the target of two percent. The corresponding HICP for Finland in July was 3.1 percent
Annual inflation is the change in prices between the current month and the same month of the previous year.