Estonia's consumer prices up 3.6% year on year in October, flash estimate shows
Statistics Estonia's preliminary estimate shows the consumer price index rose 0.6% in October from September and 3.6% from a year earlier. Bank analysts expect price growth to speed up as energy costs climb.
Statistics Estonia, the country's official statistics agency, has released a preliminary flash estimate of price changes. It shows the consumer price index rose by 0.6% in October compared with September and by 3.6% year on year. The index tracks how quickly everyday household costs are increasing.
Bank analysts expect price growth to accelerate in the coming months, mainly because of higher energy prices.
Energy prices as the driver
Swedbank economist Liis Elmik explained that electricity exchange prices went up in October because renewable energy output declined. Oil and gas prices rose further as the conflict in the Persian Gulf region intensified.
Swedbank said futures contracts point to crude oil staying above $100 per barrel until the end of the year. The bank does not expect price pressures to ease until next year.
Possible upward revision
Statistics Estonia will publish the final consumer price index change, with revised data, on Friday. Bigbank economist Raul Eamets noted that a similar flash estimate in September put price growth at 3.1%, while revised data showed the actual rise was 3.5%.
Eamets therefore said it can be assumed that the actual increase this time may also turn out higher than the flash estimate.
