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"Price growth in Estonia at present is led to a great extent by internal factors, including the fact that the opportunity to increase prices will not be left unused when it comes to favorable demand. While food prices in the eurozone increase by approximately 1.5 percentage points annually, then food prices grow four times as fast in Estonia. Food prices in Estonia in May and June increased by 6.4% compared to last year," Palm told BNS.

"Price pressure will continue with the support of internal demand and tax amendments. The increase in the price of services in Estonia is nearly twice as fast as the eurozone average. At the same time, moderate external price pressure helps to tame the increase in inflation somewhat. For example, crude oil prices have decreased on the world market, which has been accompanied by a stronger euro in the past few weeks," he said.

"We must take into consideration a 3 percentage point price increase in the next few months, which will decrease slightly towards the end of the year. Our spring expectation for this year was a 3 percentage point price increase for the year overall. We are moving in that tempo. A gap in price growth with the eurozone average and in comparison to Finland is expanding. Taking into account revenue from tourism, such a fast price increase in terms of earning long-term revenue would not be beneficial to anyone," Palm said.