Estonia: Inflation moderates in March but remains elevated
April 13, 2011
In March, consumer prices increased 0.8% over the previous month, following on a 0.6% rise tallied in February. The reading came in below the 1.3% rise registered in March 2010, which saw annual inflation step down to 5.2% (February: 5.7%). The monthly price rise was fuelled by higher transport costs (+1.8% month-on-month), which accounted for a quarter of March's overall price increase. Meanwhile, annual average HICP inflation (based on the harmonized index of consumer prices) continued to accelerate, stepping up from 3.7% in February to 4.1% in March. For this year, the Central Bank expects HICP inflation to average 3.5% before moderating to 1.8% in 2012.