Estonia: Inflation falls to two-year low in January
February 20, 2019
Consumer prices fell 0.2% from the previous month in January, following December’s 0.3% decrease. A breakdown of the sub-components provided by Statistics Estonia showed that 4 of the total 12 saw a fall in prices, led by clothing and footwear, and transport, which more than offset higher prices for food and housing.
Meanwhile, inflation fell to a two-year low of 2.7% in January, moderating considerably from the previous month’s reading (December: 3.4%). Despite this, annual average inflation remained stable at 3.4% in January. Lastly, harmonized inflation eased to 2.8% in January, from 3.3% in the previous month.
Estonia Inflation Forecast
FocusEconomics panelists project harmonized inflation to average 2.8% in 2019, which is unchanged from last month’s forecast. For 2020, they expect inflation to average 2.7%.
Author: Almanas Stanapedis, Research Team Manager