In the aftermath of the COVID-19 pandemic and the energy crisis spurred by Russia's invasion of Ukraine, inflation has surged dramatically in Finland, leading to significant rises in interest rates as a countermeasure. This inflationary period has left lasting effects on household purchasing power, causing consumers to become increasingly cautious with their spending, which in turn has contributed to business bankruptcies and sluggish economic growth. According to Milla Nyyssölä, a leading researcher at Labor, when a large segment of the population faces persistent declines in purchasing power or a very slow recovery, their ability to spend diminishes considerably.

The findings are part of a study commissioned by the Union of Public and Welfare Sectors (JHL), and conducted by Labor, focusing on example households in various financial situations, including a single widow (cleaner), a single parent (nurse), a student, and a working family. These examples highlight that purchasing power development is primarily influenced by employment status and wage levels. The study draws attention to the economic pressures faced by students specifically, underscoring their vulnerability to these wider economic trends.

As households grapple with these challenges, the implications for consumer behavior and business sustainability are profound. With purchasing power effectively weakened, economic recovery prospects appear dim, suggesting that unless substantial policy measures are implemented to support consumer confidence and spending, many families—including students—will continue to struggle, limiting overall economic growth in Finland.