Estonia: Inflation jumps in January
February 7, 2012
In January, consumer prices increased 0.7% over the previous month, which was above the 0.1% rise tallied in December. According to Statistics Estonia, the reading was mainly influenced by more expensive electricity, heat energy and fuels. As a result, annual headline inflation moved up for the first time since August last year, jumping from 3.7% in December to 4.5% in January. Annual HICP inflation (based on the harmonized index of consumer prices) fell from 4.4% in November to 4.1% in December, the latest month for which data are available. For the full year 2011, annual average HICP inflation was 5.1%, which nearly doubled the 2.7% rate registered in 2010. For this year and the next, however, the Central Bank expects HICP inflation to moderate considerably and to average 2.8% and 2.9%, respectively.