CPI inflation picks up to 2.4% y/y in Estonia

CPI inflation picked up to 2.4% y/y in August, from 2.1% y/y in July, according to figures of the statistical office. The greatest impact was made by the transport sector, where prices rose by 1.0% y/y, after two months of decline. Moreover, the housing sector also contributed notably as price growth accelerated to 2.1% y/y, due to an increase in rent. The food sector also played a role as price growth quickened to 4.6% y/y, reaching its highest growth rate since February 2018, which was mostly attributed to more expensive vegetables, the stat office noted.

Looking ahead, consumer price growth might ease down somewhat further in the coming months given the high reference base. To remind, the government expects average annual inflation at 2.1% in 2019, while the average in the period January-August came in at 2.5% y/y.

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