Estonia: Rising consumer prices see inflation average 2.7% in 2010
January 7, 2011
In December, consumer prices increased 0.5% over the previous month, which reflected a slight acceleration over the 0.3% rise tallied in November. The monthly reading reflected strong increases in the price of transport (+1.9% month-on-month) as well as for food and non-alcoholic beverages (+0.9% mom). As a result of December's price increase, annual inflation increased from 5.3% in November to 5.7%, coming in above market expectations that inflation would rise to 5.5%. Meanwhile, annual average harmonised inflation jumped from 2.1% in November to end the year at 2.7%, which was in line with the latest forecast released by the Central Bank on 20 December. For this year, the Central Bank expects harmonised annual inflation to average 3.5% before moderating to 1.8% in 2012.
Author: Armando Ciccarelli, Head of Data Solutions