Estonia: Inflation accelerates in August on housing
September 7, 2011
In August, consumer prices increased 0.3%, below the 0.5% rise observed in July. The result mainly reflected price increases in the housing category (+2.8% month-on-month), but was offset to some extent by falling food prices (-1.0% mom). As a result, annual headline inflation accelerated from 5.2% in July to 5.5% in August. Annual HICP inflation (based on the harmonized index of consumer prices) increased from 5.3% in July to 5.6% in August. Consequently, Estonia's harmonized inflation remains the highest among the 17 countries of the European Monetary Union. The trend continues to point upwards, with annual average HICP inflation climbing from 4.9% in July to 5.1% in August. For this year, the Central Bank expects HICP inflation to average 4.7%, before moderating to 2.5% in 2012.