Estonia's consumer price index (CPI) grew 4% in annual terms in June, adding a full percentage point to the annual reading from the previous month, data from Statistics Estonia showed on July 7.
The reading shows Estonian price growth picking up speed in a third consecutive month in June. CPI is expected to expand 3.1% in 2018, according to the European Commission’s most recent forecast. Eesti Pank predicts inflation of 3.2% this year. The overall price growth came in at 3.4% in 2017.
The annual growth in June was driven by growing prices of fuels with petrol prices expanding 17.8% y/y and diesel prices growing 17% in annual terms in June. Prices in transport increased 4.7% y/y overall in May.
Fast-growing prices in the housing segment, at 6.9% y/y, as well as a growth of 12.9% y/y of prices of alcoholic beverages and tobacco, also contributed.
Prices of food and non-alcoholic beverages expanded 2.9% y/y. That included significant growth in prices of eggs as well as frozen fruit and berries.
Prices fell 4.1% y/y in the communication segment and 3.7% y/y in education.
Overall, price growth of goods came in at 4.1% y/y in June, while services were 3.9% more expensive in annual terms.
June saw the Estonian CPI in positive territory for the 23rd month in a row after deflation dominated between May 2015 and July 2016. In monthly terms, consumer prices grew 0.9% in the sixth month, after expanding 0.3% in monthly terms in may.