Estonia: Inflation continues to ease in April
May 8, 2013
In April, consumer prices fell 0.1% over the previous month, which contrasted the 0.7% increase observed in March. According to Statistics Estonia, the decrease was mainly influenced by cheaper airplane tickets as well as for lower prices for motor fuel.
As a result of the monthly decrease, annual headline inflation fell from 3.5% in March to 3.1% in April, the lowest level since August 2010. Meanwhile, March's annual HICP inflation (based on the harmonized index of consumer prices), edged down to 3.8% from 4.0% in February, the latest month for which data are available.
Annual average HICP inflation inched down from 4.1% in February to 4.0% in March. The Central Bank expects HICP inflation to average 3.6% in 2013 and 2.4% in 2014. FocusEconomics Consensus Forecast panellists expect harmonized inflation to average 3.6% this year, which is unchanged from last month's forecast. Next year, the panel expects average inflation to moderate to 3.1%.