Estonia’s CPI inflation moderates to 3.4% y/y in July.

By bne IntelliNews August 7, 2013

CPI inflation amounted to 3.4% y/y and -0.1% m/m in July 2013 (3.8% y/y and 0.5% m/m in June), Statistics Estonia reported. Prices growth moderated in July. Previously accelerating in February to 3.7% y/y on high food prices, consumer prices declined for two consecutive months and rebounded slightly in May.

To remind, average consumer price increase for 2012 overall stood at 3.9% y/y, while in 2011 average inflation was 5%, in 2010 average inflation was 3% vs. 0.1% deflation in 2009 and 10.4% inflation in 2008.

Consumer price inflation in July was mostly influenced by housing expenditures that increased by 8.4% y/y and gave about 40% of overall increase. Housing prices, same as in previous months, were influenced by 80% y/y hike in electricity prices (electricity prices jumped in the beginning of 2013 after total de-regulation of the electricity market). Food prices growth of 5.2% y/y accounted for about 40% of consumer prices’ growth in July. Food inflation was due to higher prices on vegetables.  

Goods were 3.1% and services 4% more expensive y/y, while regulated prices went up by 1.1% and non-regulated prices by 4.2% y/y in July.

The Bank of Estonia last month commented that electricity price was to blame for accelerating inflation figures in May-June. At the same time the central bank believed that risks to price stability increased both externally and domestically. Improved outlook on external growth in H2/13 might raise the prices of imported raw materials. Domestically higher labor costs in H1/13 could pressure prices upwards, especially through services. July’s data did not yet confirm these concerns.

Last month the CB reiterated its 3% average HCPI forecast for 2013 (revised downwards in June from previous 3.6%).

Related Articles

Latvia issues permits to new gas infrastructure holding

The Latvian Public Utilities Commission (SPRK) announced on January 5 that it has issued licences to Conexus Baltic Grid for the transmission and storage of gas. Conexus Baltic Grid will control ... more

Latvijas Gaze agrees to set up spin-off company to operate gas grid and storage

A shareholders' meeting at Latvijas Gaze (LG) decided on December 22 to set up a company that will be used to spin off the country's gas pipelines and storage facilities. The creation of Conexus ... more

Latvia fines Swedbank for failings in anti money laundering measures

The Latvian branch of the Swedish banking group Swedbank said on November 23 it will implement measures to curb money laundering. The pledge follows an audit and a fine of €1.36mn from the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss