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International Internet Magazine. Baltic States news & analytics Sunday, 25.08.2019, 08:07

LHV: Food price growth in Estonia led by increase in price of fresh vegetables

BC, Tallinn, 08.05.2019.Print version
LHV analyst Kristo Aab said that the increase in the price of food in Estonia has accelerated since the beginning of the year and is led by the price growth of fresh vegetables, reported LETA/BNS.

The consumer price index rose 3.2% on year in April. Compared to April 2018, the consumer price index was affected the most by food, which contributed one fourth of the total increase of the index. Of the latter, nearly three quarters was contributed by 30 percent more expensive vegetables, Statistics Estonia said.

"Last year was worse than average in agriculture in terms of yield and fast-growing labor expenses have also raised the cost price of vegetables," Aab told.

At the same time, the analyst said that the price of oil, which has remained relatively stable in year-over-year comparison, has helped to keep the increase in the price of energy under control. While at the end of last year, the increase in housing expenses was up 9% on year with the support of increased energy prices, it has been almost half as slow in recent months, Aab said.

While expenses made on transport became cheaper at the beginning of the year, they increase again in April due to the weakening of the euro against the US dollar and the addition of a compulsory bioelement in motor fuels. According to Aab, the latter is the main reason why inflation was so fast in April in the monthly comparison.

Statistics Estonia said on Wednesday that the change of the consumer price index in Estonia in April 2019 was 1.3% compared to March 2019 and 3.2% compared to April of the previous year. M-o-m change of the consumer price index was 1.3% or more last in February 2017 when it was also 1.3%.

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