Estonia: Inflation slows in March
April 5, 2013
In March, consumer prices added 0.7% over the previous month, which was slightly above the 0.6% increase observed in February. According to Statistics Estonia, the increase was mainly influenced by more expensive airplane tickets as well as higher prices for alcoholic beverages and tobacco. Despite the monthly increase, annual headline inflation edged down from 3.7% in February to 3.5% in March. Meanwhile, February's annual HICP inflation (based on the harmonized index of consumer prices), the latest month for which data are available, rose to 4.0% from 3.7% in January. Annual average HICP inflation remained unchanged at 4.1% in February. The Central Bank expects HICP inflation to average 3.6% in 2013 and 2.4% in 2014. FocusEconomics Consensus Forecast panellists expect harmonized inflation to average 3.2% this year, which is down 0.3 percentage points from last month's forecast. Next year, the panel expects average inflation to moderate to 2.9%.