Estonia’s CPI moderates further to 1.5% y/y in October.

By bne IntelliNews November 8, 2013

The CPI inflation in October was 1.5% y/y, Statistics Estonia reported. The indicator moderated notably compared to 3.4%, 2.9% y/y, and 2.1% y/y seen in July, August, and September respectively. In m/m terms, the change of the consumer price index was -0.3% in October.

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 October was as usual influenced the most by electricity and food. After deregulation of the electricity market as of January 2013 electricity prices have been constantly high (30% y/y in October). At the same time in the reporting month 6.1% y/y decline in transportation prices cancelled about a half of the increase caused by food and utilities.

Goods became 0.8% y/y more expensive in October and services 2.9% y/y more expensive. Regulated prices of goods and services declined by 1.6% y/y and non-regulated went up by 2.6% y/y.

The Bank of Estonia commented that October’s slowdown in consumer prices is in line with the reduction of economic activity. At the same time, inflation moderation is becoming more broad based as compared to previous months. Last month the CB reiterated its 3% average HCPI forecast for 2013 (revised downwards in June from previous 3.6%).

Related Articles

ECB to seek clarity on Rimsevics' role as Latvian central banker remains mired in scandal

The European Central Bank (ECB) President Mario Draghi said on March 8 that the Eurozone’s central bank will seek clarity on what role the Latvian central bank governor Ilmars Rimsevics has ... more

Estonia to probe Danske Bank over money laundering allegations

Estonia's financial regulator will investigate Danske Bank over allegations made by the Danish and UK media that the bank’s branch in Estonia was involved in money laundering, the regulator ... more

Latvia in shock after third-largest lender ABLV folds in aftermath of money laundering allegations

The Latvian authorities will meet on February 26 to discuss dangers that may ensue from the failure of the country’s third-largest bank ABLV, the Baltic state’s prime minister said on February ... more