Estonia: Inflation stabilizes at lowest level in over four years
May 8, 2014
Consumer prices were flat over the previous month in April, which was down from the 0.3% increase observed in March. According to Statistics Estonia, higher prices for hotels and restaurants and for alcoholic beverages and tobacco were offset by lower prices for housing and transport.
Annual inflation stabilized at March's 0.2% in April, which marks the lowest rate since February 2010. HICP inflation-based on the harmonized index of consumer prices-continued the downward trend that has been in place since July 2013 and dropped from 1.1% in February to 0.7% in March (the last month for which data are available). Annual average HICP inflation inched down from 2.8% February to 2.6% in March.
The Central Bank expects HICP inflation of 2.3% in 2014 and of 3.0% in 2015. FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 1.8% in 2014, which is unchanged from last month's forecast. In 2015, the panel expects average inflation to accelerate to 2.5%.
Author: Carl Kelly, Economist