The Central Bank of Estonia reported that annual consumer price inflation rose to 3.5% in September, with prices increasing 0.9% from August. Energy costs drove the acceleration, while inflation excluding energy remained moderate and showed no signs of broader price pressures. Services inflation fell to 2.3% from 10% a year earlier. Motor fuels accounted for almost half of annual inflation as euro denominated crude oil prices rose about 70% from a year earlier and refining margins increased. Natural gas prices climbed 38%, while new capacity and security of supply fees pushed up consumer electricity prices despite lower wholesale prices. Food prices remained below their year earlier level, although higher producer costs could feed through to consumers with a lag. Persistently high energy prices are also expected to raise business production and transport costs, gradually affecting other goods and services.
Central Bank of Estonia reports energy driven inflation of 3.5% in September
The Central Bank of Estonia reported that annual inflation reached 3.5% in September, driven mainly by motor fuels and other energy costs. Inflation excluding energy remained moderate, while services inflation fell to 2.3%. Higher energy and food production costs could gradually feed through to broader consumer prices.