The Ministry of Finance of Estonia reported that annual inflation accelerated to 3.5% in September, ending the very low inflation seen during the summer. Consumer prices rose 0.9% from August, driven by higher energy costs linked to the Middle East crisis, while falling food prices and low core inflation continued to restrain overall price growth. The ministry expects inflation to accelerate moderately in the coming months. Energy prices were 17% higher than a year earlier as oil and gas prices rose, although wholesale electricity prices remained slightly below year earlier levels. Food prices fell 1.2% annually, led by dairy and oil products, fruit and coffee, but this decline is expected to ease gradually during the autumn. Core inflation was 1.6%, reflecting lower prices for some services and industrial goods as well as the abolition of kindergarten attendance fees.
Estonia's Ministry of Finance sees inflation rising to 3.5% as energy prices climb
The Ministry of Finance of Estonia reported that annual inflation rose to 3.5% in September as higher energy prices outweighed a 1.2% fall in food prices. Energy prices increased 17% annually, while core inflation remained low at 1.6%. Inflation is expected to accelerate moderately in the coming months.