Estonia: Consumer prices record fourth consecutive annual drop in September
October 7, 2014
Consumer prices in September fell 0.2% over the previous month, which followed the 0.3% fall observed in August. According to Statistics Estonia, the decline was driven by a steep drop in prices for education following the implementation of a higher education reform that guarantees free tuition for first and second year students taking university courses in Estonia.
Consumer prices recorded a 0.6% year-on-year decrease in September, which followed the 0.7% decline tallied in August. The result marked the fourth consecutive drop. Meanwhile, annual harmonized prices—based on the harmonized index of consumer prices—decreased from a flat reading in July to a 0.2% fall in August (the last month for which data are available). Annual average HICP inflation fell from 1.5% in July to 1.2% in August.
Author: Carl Kelly, Economist