The Bank of Estonia reported that annual consumer price inflation was 1.5% in August, with energy making the largest contribution. Motor fuel prices rose as refining margins increased amid disrupted European diesel imports and stronger late summer demand. Wholesale electricity prices were 25% lower than a year earlier, but consumer prices edged up because of more expensive fixed rate packages and new frequency reserve and security of supply fees. Food prices fell 2.6%, reflecting lower prices for dairy, meat and seasonal produce. Inflation has also eased for imported manufactured goods, while services inflation has declined to 2% from 10% last year. Estonia’s broader disinflation partly reflects base effects as last year’s motor vehicle tax, value added tax increase and excise increases no longer affect the annual comparison. The central bank’s June forecast projected full year inflation of 3.4%. It will publish its next forecast on Sept. 22, while warning that fuel prices may remain uncertain in the coming months.
2026-09-07Central Bank of Estonia
Bank of Estonia reports annual inflation at 1.5% in August as food prices fall
The Bank of Estonia reported annual inflation of 1.5% in August, with higher energy costs offset by a 2.6% fall in food prices. Inflation has also eased for manufactured goods and services, while tax related base effects have lowered the annual rate. The bank will publish an updated forecast on Sept. 22.