Estonia's annual inflation drops to 1.3% in August, lowest since 2021
Estonia's annual inflation slowed to 1.3 percent in August, the lowest rate since spring 2021, as rising housing and transport costs were offset by cheaper food.
Estonia's annual inflation rate fell to 1.3 percent in August, marking the lowest level recorded since spring 2021, when the country's economy was still recovering from the coronavirus pandemic, Statistics Estonia reported.
According to the flash estimate, the harmonized index of consumer prices (HICP) rose by 0.3 percent between July and August. The monthly increase was driven mainly by higher housing-related and transport costs, while food and non-alcoholic beverage prices declined, partially offsetting the rise.
Statisticians' comments
Lauri Veski, Consumer Price Statistics Service Manager at Statistics Estonia, explained that compared with August of last year, the annual change was shaped primarily by increased housing and transport costs on one hand, and falling food and non-alcoholic beverage prices on the other.
Because the flash estimate also factors in tourist spending, the figures are expected to be refined once more detailed data on August prices become available.
Two different indices
Statistics Estonia noted that the consumer price index (CPI) is based on the average expenditure structure of Estonian residents, while the HICP additionally accounts for tourist spending, which is naturally highest during the summer months. The HICP is designed to be comparable across countries internationally.
The CPI figures for August are due to be published on September 7, with the finalized HICP data following on September 16.
