Estonia: Inflation eases in July
August 17, 2018
Consumer prices edged up 0.1% over the previous month in July, down from June’s 0.9% increase. According to data released by Statistics Estonia, the deceleration was led by a fall in prices for clothing and footwear. Overall, 5 out of the 12 components of the ek posted month-on-month declines in prices, including food and non-alcoholic beverages. Nevertheless, these were partially offset by markedly higher prices for alcoholic beverages and tobacco, and housing.
Meanwhile, inflation fell to 3.5% in July from 4.0% in June. Annual average inflation, however, remained unchanged from the previous month’s print and came in at 3.5% in July.
Harmonized inflation moderated from 3.9% in June to 3.3% in July. Meanwhile, annual average harmonized inflation ticked down to 3.6% in July, from 3.7% in the previous month.
Estonia Inflation Forecast
FocusEconomics panelists project harmonized inflation to average 3.1% in 2018, which is unchanged from last month’s forecast. For 2019, they expect inflation to average 2.8%.
Author: Almanas Stanapedis, Research Team Manager