Estonia: Inflation slows in June
July 7, 2011
In June, consumer prices were flat, following on a 0.1% rise tallied in May. The result mainly reflected falling food (-0.6% month-on-month) and transport prices (-0.8% mom), which compensated for a rise in prices in the housing category (+1.2% mom), which represents the second largest component of the CPI index. Due to unchanged prices as well as the favourable base effect of June 2010, annual headline inflation edged down from the 5.3% observed in May to 4.9% in June. Despite the easing of price pressures, 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) inched up from 4.7% in May to 4.8% in June. For this year, the Central Bank expects HICP inflation to average 4.7%, before moderating to 2.5% in 2012.