Swedbank: Price growth in Estonia set to accelerate again this autumn
Swedbank economist forecasts that Estonia's inflation, which slowed over summer, will pick up pace again in autumn, bringing annual price growth to around 3.5%.
Swedbank senior analyst-economist Liis Elmik told Estonian television programme "Aktuaalne Kaamera" that inflation in Estonia is expected to reach roughly 3.5% for the year. She said prices should rise faster in autumn due to increasing energy and food costs.
According to Elmik, annual price growth in Estonia is currently fairly low, with prices up just over 2% year on year. She attributed this mainly to falling food prices, a rare occurrence for Estonia, linked primarily to lower raw material costs in food production.
July figures
The consumer price index rose half a percent in July compared to June, and by more than 2% compared to the same period last year. Goods became about 1% more expensive year on year, while services rose nearly 4%.
Waste disposal costs jumped 52% over the year, water supply rose 6.5%, and rent increased 4%, while electricity prices fell 4%.
However, on an annual basis the steepest increases were in gas prices, up 26%, electricity, up 14%, alcohol and tobacco, up nearly 6.5%, and petrol, up 6%.
Meanwhile, nuts and fruit became almost 11% cheaper over the year, vegetables nearly 4% cheaper, dairy products and eggs 3% cheaper, and food and non-alcoholic beverages overall fell 1.5%.
