CPI inflation accelerates further to 4.4% y/y in Estonia

CPI inflation accelerated further from 3.7% y/y in September to 4.4% y/y in October, according to figures of the statistical office, published on Wednesday. The most significant contribution was made by transport-related products, which picked up price growth tangibly to 10.1% y/y, up from 5.1% y/y in September. The acceleration was mainly attributed to higher prices of petrol and diesel fuel, the stat office noted. Meanwhile, the prices of food, alcohol and tobacco exerted some downward pressure on the headline index as they eased their price growth to 2.8% y/y and 4.8% y/y, respectively. The acceleration was to a certain extent attributed to cheaper fruits.

Looking ahead, CPI inflation might ease down somewhat in the near term, given that PPI inflation decelerated to 2.9% y/y in September, while international oil prices have continued to moderate at the beginning of November. To remind, the government expects CPI inflation at 3.3% on average in 2018.

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