Estonia: Inflation moderates in October
November 14, 2016
Consumer prices dropped 0.3% in October, contrasting the 0.2% increase observed in September. According to Statistics Estonia (SE), the monthly reading mainly reflected lower prices in 6 of the 12 categories of the index, among which food and non-alcoholic beverages and miscellaneous goods and services were the categories that dropped the most.
In October, inflation moderated from September’s over two-year high of 1.0% to 0.6%. October’s reading marked the third increase in annual consumer prices since June 2015. 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 softened from the 0.3% drop observed in September to a 0.2% decline in October.
HICP inflation was 1.0% in October, coming in below the 1.7% reading observed in September. Meanwhile, average HICP inflation inched up from 0.4% in September to 0.5% in October.