Estonia: Consumer prices hit an over-five-year low in January
February 6, 2015
Consumer prices dropped 0.4% over the previous month in January and came in below the flat reading tallied in December. According to Statistics Estonia, the result mainly reflected lower prices for motor fuel resulting from the sharp decline in global oil prices. Conversely, prices for food, alcoholic beverages and tobacco were higher than in the previous month.
Consumer prices decreased 1.3% compared to the same month last year in January, which was well below the 0.5% drop tallied in December and marked the strongest decline in more than five years. Meanwhile, annual HICP inflation inched up from a flat reading in November to 0.1% in December (the last month for which data are available). Despite this slight increase, annual average HICP inflation ticked down from November’s 0.6 to 0.5% in December.
Author: Cecilia Simkievich, Economist