Estonia: Inflation falls to lowest level in four years
March 7, 2014
Consumer prices rose 0.1% over the previous month in February, which was down from the 0.4% increase observed in January. According to Statistics Estonia, the increase reflects that higher prices for clothing and footwear, as well as for alcoholic beverages and tobacco, more than offset lower prices for housing. Annual inflation fell from 1.1% in January to 0.6% in February, which marked the lowest rate since February 2010. HICP inflation-based on the harmonized index of consumer prices-continued the downward trend that has been in place since July 2013 and dropped from 2.0% in December to 1.6% in January (the last month for which data are available). Annual average HICP inflation inched down from 3.3% in December to 3.1% in January. The Central Bank expects HICP inflation of 2.3% in 2014 and of 3.0% in 2015. FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 2.8% in 2014, which is down 0.1 percentage points from last month's forecast. In 2015, the panel expects average inflation to accelerate to 3.0%.
Author: Carl Kelly, Economist