The year-on-year rise in consumer prices stood at just 0.8 percent in September, according to a report published on Monday by Statistics Finland.
Finland's rate of inflation has been decreasing steadily over the past 18 months, having hit highs of nearly 9 percent in February 2023.
In August, the rate was 1.2 percent while it stood at 1.0 percent in July.
"The decrease of inflation from August to September was caused by a milder rise in the average interest rate on housing loans and lower prices of electricity, for example," the report said, adding that a fall in average fuel prices was also a contributory factor.
Statistics Finland noted however that some costs were still increasing, including housing maintenance charges and the prices of cigarettes compared to one year ago.
The number-crunching agency also said that the impact of an increase in the general rate of value-added tax (VAT), which went up from 24 percent to 25.5 percent at the beginning of September, was not fully reflected in the latest data.
Kristiina Nieminen, a senior actuary at Statistics Finland, predicted that the VAT rise was likely to mean a 1.2 percent increase in inflation, but this does not seem to have happened for all products.
"From August to September, prices rose by 1.2 percent in alcoholic beverages, clothing, footwear and home furnishings," Nieminen noted. "By contrast, price changes seem to have been slower than the VAT increase, for example, in household and household goods, toys, and hygiene and cosmetics products."
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