Inflation in 2026 in brief
Inflation means a general rise in the price level. According to Statistics Finland, the annual change in consumer prices was 2.2% in August 2026, compared with 2.1% in July. Inflation was pushed up mostly by fuel and heating oil prices. Underlying inflation, which excludes highly volatile items such as energy, was 1.4%.
In practice, 2.2% inflation means that a shopping basket that cost €100 a year ago now costs on average about €102.20. Your own inflation can differ considerably from the average depending on, for example, whether your money goes on fuel or housing.
The effect of inflation on your own finances is easy to estimate. If a household's monthly expenses are 2 500 euros and prices rise 2.2%, the same consumption costs about 55 euros more per month a year later, or about 660 euros a year. If income does not rise at the same pace, the difference must be covered from savings or by cutting expenses.
Pay and purchasing power
Purchasing power improves when earnings rise faster than prices. According to Statistics Finland's wage and salary earnings index, earnings rose by 3,4 % year on year in April–June 2026, and real earnings, i.e. earnings adjusted for inflation, by 1,6 %. On average, an employee's purchasing power therefore grows, but an individual household's situation depends on its own pay rise and expenditure structure.
Interest rates: Euribor and the ECB
The European Central Bank raised its key interest rates in June and September 2026, and the deposit rate is 2,50 % from 16.9.2026. According to the Bank of Finland, the 12-month Euribor was 3,186 % on 5.10.2026. Many Finnish home loans are tied to Euribor, so a rise in the rate shows up for the borrower with a delay, when the loan's rate review date arrives.
For a saver, rising interest rates usually mean a better deposit rate. Comparing the deposit rate with inflation gives a rough picture of the real return. If an account pays, for example, 2,5 % interest and 30 % withholding tax is deducted, the net interest is 1,75 %, which is below 2,2 % inflation. The purchasing power of money can therefore weaken even though the account balance grows.
A borrower should check in the loan agreement which reference rate the loan is tied to and when the interest rate is next reviewed. If the rate of a loan tied to the 12-month Euribor was last reviewed a year ago, the new rate may differ clearly from the current one. The bank will tell you the new instalment before the change.
Making a budget step by step
At its simplest, a budget is a plan for what the month's net income is used for. It should be made from actual expenses, not guesses.
- Calculate monthly net income: pay after tax, plus benefits and other income.
- Go through 2–3 months of bank statements and group the expenses: housing, food, transport, loans, insurance, leisure.
- Separate essential expenses from flexible ones.
- Decide on a savings amount and move it to a separate account on payday.
- Compare actuals with the plan at the end of the month and correct the largest deviation.
50/30/20 rule as a guide
The general budgeting rule divides net income so that about 50% goes to essential expenses, 30% to discretionary spending and 20% to saving or extra loan repayments. The rule is indicative: in large cities housing often takes more than half of income, in which case the split is adapted to your own situation.
When prices rise, the budget should be updated at least once a year. Fixed expenses such as electricity, insurance and maintenance charges often change at the turn of the year.
Where can you get help?
If your budget just will not go into the black or bills are piling up, the state legal aid offices' financial and debt counselling helps free of charge and confidentially. Money Radar brings inflation, interest rates and wage development onto one page and offers calculators for checking your own budget.
Frequently asked questions
What is inflation in Finland now?
According to Statistics Finland, the annual change in consumer prices in August 2026 was 2.2%. Core inflation was 1.4%.
What is the 12-month Euribor?
According to the Bank of Finland, the 12-month Euribor was 3,186 % on 5.10.2026.
Will purchasing power grow in 2026?
On average, yes: according to Statistics Finland, earnings rose 3.4% in April–June 2026 and real earnings 1.6% year on year.
What does real interest rate mean?
The real interest rate is the interest rate from which inflation has been subtracted. If a deposit yields 1.75 % after tax and inflation is 2.2 %, the real interest rate is about −0.45 %, meaning the purchasing power of the money weakens slightly.
Ready-made tools
- Household budget and debt plan · Monthly budget, savings goals and a debt repayment plan
- Loan calculator and repayment plan · Monthly instalment, interest and fees, the full repayment schedule, interest rate scenarios and a comparison of two offers
Sources
- Statistics Finland: Consumer price index, August 2026 (14.9.2026)
- Statistics Finland: Index of wage and salary earnings
- Bank of Finland: Euribor rates
- ECB: Monetary policy decisions 10.9.2026 (STT Info)
- Finnish Tax Administration: Taxation of interest income
- Legal Services Agency: Financial and debt counselling
The article is general information and does not replace the guidance of an authority, a lawyer or an adviser. Check up-to-date information from the sources.