Estonian inflation eases to 2.1% y/y in July

Estonian inflation eases to 2.1% y/y in July
By bne IntelliNews August 8, 2019

Estonia's consumer price index (CPI) grew 2.1% y/y in July, data from Statistics Estonia showed on August 7.

Price growth eased 0.3pp versus the annual CPI change recorded in June, meaning the index has stayed in positive territory for three consecutive years now. 

CPI expansion was driven by fast-growing prices in the food and non-alcoholic beverages segment, which contributed nearly half of the overall increase, the stats office said. Prices expanded 4.4% y/y in the segment in July, compared to 3.1% y/y the preceding month. 

Prices increased in most other segments in annual terms in the seventh month. Inflation came in at 5.2% y/y in recreation and culture, compared to an expansion of 6% y/y the preceding month.

In the housing segment, price growth slowed down to 1.2% y/y in July after expanding 2.9% y/y in June. 

The transport segment saw prices decrease 0.8% y/y in July, compared to a fall of 0.2% y/y the previous month. The fall included prices of petrol retreating 1.7% y/y while prices of diesel dipped 0.2% y/y.

Communications and alcoholic beverages and tobacco were the only other segments to see prices drop in July, at 1.9% y/y each.

In monthly terms, consumer prices fell 0.1% in July, following an expansion of 0.2% m/m the preceding month.

The outlook for price growth in 2019 remains moderate. Inflation is expected to ease in 2019 to 2.4%, according to the latest forecast by the European Commission. CPI grew 3.4% last year.