Estonia's inflation picks up to 3.5% in September on fuel costs
Estonia's consumer price index rose 3.5% year on year in September, faster than in recent months. Fuel and housing costs pushed prices up, while cheaper food held the increase back.
Consumer prices in Estonia were 3.5% higher in September than a year earlier, according to Statistics Estonia. Inflation had been slowing for several months before accelerating again. Compared with August, the price index rose by 0.9%.
Fuel and housing
Gasoline became 33.8% more expensive over the year, while diesel, which is subject to excise duty, rose 58%. The fuel price increase stems from the ongoing conflict in the Middle East. Against August, gasoline was up 9.5% and diesel 9.3%.
Housing costs were driven mainly by electricity (+6.1%), network natural gas (+44.5%), refuse collection (+56.6%) and wood fuel (+10.6%). On a monthly basis, electricity cost 4% more and network gas 22.2% more.
Food and other goods
Prices of food and non-alcoholic beverages fell 1.2% year on year. This group carries the largest weight in the index, so it limited the overall rise. Goods were 3.6% and services 3.5% more expensive than a year earlier. Compared with August, food was 0.5% costlier: vegetables rose 1.8%, fruit and nuts 1.9%, and milk, dairy products and eggs 0.4%.
Clothing and footwear gained 5.9% month on month but remained 1.5% cheaper than a year ago.
Price declines
Rental payments fell 3.2% on the month. Childcare services became 30% cheaper, mainly because of changes to Tallinn municipal kindergarten fees, with most families in the capital now exempt. Hotel accommodation was 10.1% cheaper and international flights 13.8% less.
Lauri Veski, Consumer Price Statistics Service Manager at Statistics Estonia, said housing and transport costs had the strongest effect on the annual rise, while falling food prices slowed it.
