Estonia: Inflation decelerates in September
October 7, 2011
In September, consumer prices increased 0.5%, which was above the 0.3% rise observed in August. The result mainly reflected price increases in the transport and housing categories, which were offset to some extent by falling food prices. Annual headline inflation fell from 5.5% in August to 5.2% in September. Annual HICP inflation (based on the harmonized index of consumer prices) eased from 5.6% in August to 5.4% in September. Despite the drop, Estonia's harmonized inflation rate remains the highest among the 17 countries of the European Monetary Union. Moreover, the trend continues to point upwards, with annual average HICP inflation climbing from 5.1% in August to 5.2% in September. For this year, the Central Bank expects HICP inflation to average 4.7%, before moderating to 2.5% in 2012.