Estonia Money (ann. var. of M2 %)

Money in Estonia

In April, harmonized inflation fell to 13.2% (March: 15.6%) on lower price pressures for food and housing and utilities outweighing rebounding price increases for transport. Our panel sees the headline rate moderating to less than half of 2022’s average in 2023 on weaker domestic demand and higher interest rates. Inflation will remain above the ECB’s 2.0% target, however.