Estonia's consumer price index (CPI) grew 2.2% y/y in September, data from Statistics Estonia showed on October 7.
Price growth eased 0.2pp in September versus the annual CPI change recorded in August. CPI expansion was driven by prices growing 3.2% y/y in the food and non-alcoholic beverages segment, a slowdown against the growth of 4.6% y/y the preceding month.
Prices increased in most other segments in annual terms in the ninth month. Inflation came in at 6.9% y/y in recreation and culture, compared to an expansion of 5.7% y/y the preceding month.
In the housing segment, price growth slowed down to 1.1% y/y in September after expanding 2.1% y/y in August.
The transport segment saw prices increase 0.7% y/y in September, compared to an increase 1% y/y the previous month.
Communications and alcoholic beverages and tobacco were the only segments to see prices drop in September, at 1.7% y/y and 2.5% y/y, respectively.
In monthly terms, consumer prices fell 0.2% in September. That follows growth of 0.7% 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. Swedbank forecasts price growth of 2.3%, as do SEB and Eesti Pank, Estonia’s central bank. CPI grew 3.4% last year.