Helsinki, April 15, 2026 – The Europe Today: Inflation in Finland accelerated in March as rising energy prices pushed up consumer costs, while the Bank of Finland cautioned that ongoing geopolitical tensions could fuel inflation across the euro area and slow economic growth.
According to Statistics Finland, consumer prices increased by 1.3 per cent year-on-year in March, up from 0.6 per cent in February. On a monthly basis, prices rose by 0.7 per cent, driven largely by higher costs for electricity, diesel, and petrol.
The rise in energy prices was partially offset by lower interest rates on housing loans and consumer credit. However, core inflation—which excludes food and energy—remained subdued at 0.2 per cent, indicating limited underlying price pressures.
Under the EU-harmonised index, inflation in Finland reached 2.5 per cent in March, up from 1.9 per cent in February and broadly in line with estimates for the euro area.
The Bank of Finland highlighted that geopolitical tensions, particularly the conflict in the Middle East, are significantly shaping the economic outlook. Disruptions to energy markets have increased costs for businesses and households across Europe, contributing to inflationary pressures.
Governor Olli Rehn warned that inflation is expected to rise further this year. “We are closely monitoring the development of the conflict and its economic effects. No interest rate decisions are predetermined,” he said.
The central bank also noted that damage to energy infrastructure could have lasting consequences, even after the most intense phase of the conflict subsides. Elevated energy costs continue to weigh on European industry, which remains more dependent on imported fossil fuels compared to the United States, exposing the euro area to external shocks and weakening competitiveness.
In addition, households across the euro area have increased savings amid uncertainty and previously high interest rates, limiting growth in private consumption.
Rehn emphasized that accelerating the green transition in energy production will be critical to reducing vulnerability to future shocks. He noted that Finland has made faster progress than many countries in shifting away from fossil fuels, helping to cushion the impact on its economy.
