Estonia: Inflation moderates in December
January 6, 2012
In December, consumer prices increased 0.1%, thereby matching the rise registered in November. The result mainly reflected higher transport and food prices, which were partially offset by falling prices in the alcohol and tobacco category. Annual headline inflation eased in the last month of 2011 and fell from 4.2% in November to 3.7% in December, its slowest pace since August 2010. Annual HICP inflation (based on the harmonized index of consumer prices) fell from 4.4% in November to 4.1% in December. For the full year 2011, annual average HICP inflation was 5.1%, well above the 2.7% registered in 2010. For this year and the next, however, the Central Bank expects HICP inflation to moderate considerably and to average 2.8% and 2.9%, respectively.