In Finland, food prices surged 16.3% year over year last month, according to official data. It marked the highest growth rate seen since 1964, according to the nation’s statistics agency.

The main drivers of the annual inflation rate were the high costs of electricity, food, and increased loan interest payments.

The report detailed that the core inflation rate, which excludes volatile food and energy prices, has continued its sharp rise, hitting 6.6% in February.

Jukka Appelqvist, chief economist of Finland’s Central Chamber of Commerce, said that the persistence of inflationary pressures continue to be a major risk, even if prices fail to rise as rapidly as they have in February.

He went on to say that although there were no signs of a uncontrollable rise in prices and wages within the country, it did not appear that a stable and lower rate of inflation would be likely in the near future.

In addition, Appelqvist warned that prolonged tight monetary policy, and rising interest rates, could trigger a deeper recession than economists are anticipating.

Finland has already entered a recession, after the fourth quarter GDP last year shrank more than expected compared to the previous three month period. The contraction was led by exports, investments, and consumption, according to official data.

Currently economists are forecasting Finland will endure a minor recession, before rebounding in 2024.