Estonia: Consumer prices record third consecutive annual drop in August
September 5, 2014
Consumer prices in August fell 0.3% over the previous month, which followed the 0.2% fall observed in July. According to Statistics Estonia, the decline was driven by lower prices in several categories, including food and non-alcoholic beverages, hotels and restaurants, and transport.
Consumer prices recorded a 0.7% year-on-year decrease in August, which was below the 0.4% decline tallied in July. The result marked the third consecutive drop and the lowest rate since December 2009. Meanwhile, annual HICP inflation—based on the harmonized index of consumer prices—dropped from 0.4% in June to a flat reading in July (the last month for which data are available). Annual average HICP inflation fell from 1.8% in June to 1.5% in July.
Author: Carl Kelly, Economist