Estonia: Inflation in September reached almost three-year high
October 14, 2016
In September, consumer prices inched up from a 0.1% month-on-month increase in August to 0.2%. According to Statistics Estonia (SE), the monthly reading mainly reflected higher prices in 7 of the 12 categories of the index, among which clothing and footwear was the category that increased the most.
Inflation rose 1.0% in September, which came in above August’s 0.3% print. September’s reading marked the second increase in annual consumer prices since June 2015 and the highest reading since January 2014. The annual increase was driven by the implementation of new excise taxes on alcoholic beverages and tobacco and the fading out of the low base effects of energy prices. Meanwhile, the annual average variation in consumer prices edged up from the 0.5% drop observed in August to a softer 0.3% decline in September.
HICP inflation was 1.7% in September, coming in above the 1.1% reading observed in August. Meanwhile, average HICP inflation inched up from 0.3% in August to 0.4% in September.