Estonia Inflation


Inflation slows to 13-month low

In October, consumer prices decreased 0.1%, which contrasted the 0.5% increase observed in September. The result mainly reflected falling prices in the food and transport categories, which were offset to some extent by increasing prices in the housing category. Annual headline inflation fell from 5.2% in September to 4.4% in October, the slowest pace since September 2010, partially due to a higher comparison base last year. Annual HICP inflation (based on the harmonized index of consumer prices) fell from 5.4% in September to 4.7% in October. Annual average HICP inflation remained stable at 5.2% in October. For this year, the Central Bank expects HICP inflation to average 4.7%, before moderating to 2.5% in 2012.


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