Estonia: Inflation rate remains steady in May
June 7, 2011
In May, consumer prices increased 0.1% over the previous month, following on a 0.7% rise tallied in April. Although prices in the housing category were up by 0.9% month-on-month, the overall increase was moderated by falling food (-0.2% mom) and transport prices (-0.5% mom). Owing to the subdued price increase and the favourable base effect of May 2010, annual headline inflation remained unchanged from the 5.4% observed in April. At the current level, Estonia's annual inflation is the highest among the 17 countries of the European Monetary Union. Annual average HICP inflation (based on the harmonized index of consumer prices) rose from 4.3% in April to 4.5% in May. For this year, the Central Bank expects HICP inflation to average 3.5%, before moderating to 1.8% in 2012.