Estonia's annual inflation slows to 2.3% in June, lowest since April 2021

According to Statistics Estonia, the Consumer Price Index (CPI) increased by 2.3% in June 2025 compared to June 2024, marking the smallest annual rise since April 2021. Goods prices rose by 1% and services by 4.2% year-on-year. On a monthly basis, the CPI dropped by 0.5% from May.

Lauri Veski, Manager of the Consumer Price Statistics Service at Statistics Estonia, noted that a 0.5% month-on-month decline is not unusual, as similar decreases occurred several times last year. However, the annual figure is the lowest in over five years. He attributed this partly to the high base from June 2024, but more significantly to price falls in more than half of the commodity groups, including food and non-alcoholic beverages, which have the largest weight in the CPI calculation.

The main upward contributors year-on-year were housing costs, up 7.6%, and transport costs, up 7.5%. Housing costs were driven by electricity and natural gas prices, which rose by 18.7% and 30.8%, respectively. Alcoholic beverages and tobacco prices increased by 8.9% annually (alcohol +5.8%, tobacco +16.4%), partly due to higher excise duties introduced in January 2025 and July 2025.

Food price changes varied: ready-made food rose by 2.3%, fresh or frozen meat by 0.9%, eggs by 5.6%, and fish by 5.5%, while vegetables fell by 6.7%, butter by 23.1%, and apples and stone fruits by 11.6%.

Compared to May, the CPI decline was mainly due to lower prices for food and non-alcoholic beverages (down 1.2%), petrol (down 5.5%), diesel fuel (down 8.6%), and clothing and footwear (down 3.8%). These were partly offset by higher prices for holiday trips (up 8.3%), electricity (up 1.5%), and rents (up 1.4%). Fresh vegetables dropped by 16.2%, fresh berries by 17.6%, and tropical fruits by 9.9%, while chocolate increased by 2.4% and citrus fruits by 4.3%.