The Central Bank of Estonia published a commentary on Statistics Estonia data showing annual consumer price inflation of 3.4% in April. Around one third of the increase came from energy, mainly motor fuels, which the bank linked to the war in Iran and the resulting disruptions to oil product supplies and production in the Persian Gulf region. It said higher transport fuel prices could pass through into other prices if the elevated price level persists. Diesel prices were more than a third higher than a year earlier in April and petrol was up 10%. The bank noted that Middle Eastern countries have become increasingly important diesel suppliers for Europe, including Estonia, and that lost supplies have not been replaced through European production or new supply channels. Fuel sales increased in March despite weaker overall consumption, indicating stockpiling amid fears of continuing inflation. Food price inflation slowed to 2.6%, exchange electricity prices were 25% lower than a year earlier, and clothing and footwear prices fell. Estonia's inflation will continue to be pushed up until July by last year's value added tax increase, although at constant tax rates it has been among the lowest in the euro area in recent months. Euro area inflation was 3% in April, compared with 4.9% in Lithuania and 3% in Latvia.
Central Bank of Estonia 2026-05-08
Central Bank of Estonia highlights April inflation at 3.4% with energy accounting for a third of the rise
The Central Bank of Estonia commented on Statistics Estonia data showing annual consumer price inflation of 3.4% in April, with around one third of the increase driven by energy, mainly motor fuels linked to the war in Iran and supply disruptions in the Persian Gulf. The bank highlighted sharply higher diesel and petrol prices, continued upward pressure from last year’s value added tax increase, and noted that at constant tax rates Estonia’s inflation has recently been among the lowest in the euro area, where inflation was 3% in April.