Estonia: Inflation falls to lowest level in over four years
April 7, 2014
Consumer prices rose 0.3% over the previous month in March, which was up from the 0.1% increase observed in February. According to Statistics Estonia, the increase was driven by much higher prices for clothing and footwear, and by a rise in prices for alcoholic beverages and tobacco. Annual inflation fell from 0.6% in February to 0.2% in March, 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 1.6% in January to 1.1% in February (the last month for which data are available). Annual average HICP inflation inched down from 3.1% in January to 2.8% February. 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 1.9% in 2014, which is down 0.4 percentage points from last month's forecast. In 2015, the panel expects average inflation to accelerate to 2.6%.
Author: Carl Kelly, Economist