Estonia: Inflation eases again in August
September 6, 2013
Consumer prices were flat over the previous month in August, following the 0.1% decrease observed in July. According to Statistics Estonia, a fall in prices for communications as well as for food and non-alcoholic beverages offset the rise in prices for clothing and footwear and for housing.
Annual headline inflation eased from 3.4% in July to 2.9% in August. Meanwhile, HICP inflation - based on the harmonized index of consumer prices - fell from 4.1% in June to 4.0% in July, the last month for which data is available.
In July, annual average HICP inflation remained unchanged at June's 3.9%. The Central Bank expects HICP inflation to average 3.6% in 2013 and 2.4% in 2014. FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 3.4% this year, which is down 0.1 percentage points from last month's forecast. Next year, the panel expects average inflation to moderate to 3.0%.
Author: Carl Kelly, Economist