Estonia's Ministry of Finance reported that annual inflation slowed from 2.2% in July to 1.5% in August, the lowest rate in the euro area for a second consecutive month. Consumer prices rose 0.4% month over month. Falling food prices and slower services inflation offset energy pressures, while euro-area inflation reached 3.3% amid continued energy price increases. The ministry expects the low inflation period to end as the escalating Middle East conflict raises energy costs and the decline in food prices gradually recedes. Oil prices in August were one-third higher than a year earlier and gas prices were almost twice as high, although competition among fuel retailers and lower electricity market prices limited the immediate impact. Inflation is forecast to approach 3% in September and average 3.2% for 2026.
2026-09-07Ministry of Finance (Estonia)
Estonia's Ministry of Finance forecasts inflation near 3% in September after August low
Estonia's Ministry of Finance reported that annual inflation slowed to 1.5% in August, the lowest rate in the euro area, as food prices fell and services inflation eased. Rising energy costs and diminishing food price declines are expected to lift inflation close to 3% in September, with the 2026 average forecast at 3.2%.