Analytics, Estonia, Inflation, Markets and Companies

International Internet Magazine. Baltic States news & analytics Sunday, 29.11.2020, 21:04

Annual deflation in Estonia made 1% in May

Kadri Kütt, Statistics Estonia, Riga, 07.07.2020.Print version
According to Statistics Estonia, the change of the consumer price index in June 2020 was 0.9% compared to May 2020 and –1% compared to June of the previous year. Compared to June 2019, goods were 0.8% and services 1.2% cheaper.

According to Viktoria Trasanov, leading analyst at Statistics Estonia, compared to May, the consumer price index was affected the most by 13.2% more expensive electricity that reached homes. “Another significant contributor was the index for education and child care institutions, which increased due to the decision of municipalities to reinstate kindergarten place fees after the emergency situation. Also subsidies for local transport introduced during the emergency situation ended, which, coupled with 3.2% more expensive petrol, resulted in a more significant impact of transport on the index,” explained Trasanov.

Compared to June 2019, the consumer price index was affected the most by cheaper motor fuel: diesel fuel was 25% and petrol 12.5% cheaper. Also housing services had a significant impact on the index: electricity that reached homes was 7.6% and rent 11.7% cheaper than the year before. Accommodation services were almost 30% cheaper. Of factors with an opposite effect, the index was affected the most by more expensive food and non-alcoholic beverages. The main contributors were fruit (22%) and meat and meat products (7.5%). At the same time, of food products, prices fell for potatoes (38%) and fresh vegetables (19%) and increased for fresh fruit and berries (27%).

Compared to June 2019, regulated prices of goods and services fell by 7.5% and non-regulated prices rose by 0.8%.

Change of the consumer price index by commodity groups, June 2020
Commodity groupJune 2019 – June 2020, %May 2020 – June 2020, %
Food and non-alcoholic beverages2.70.6
Alcoholic beverages and tobacco-3.9-0.6
Clothing and footwear-1.6-1.9
Household goods1.7-0.1
Recreation and culture2.70.4
Hotels, cafés and restaurants-4.9-1.6
Miscellaneous goods and services0.81.1

See also the consumer price index calculator.

The main representative of public interest for the consumer price index is the Ministry of Finance, commissioned by whom Statistics Estonia collects and analyses data. The data help to get an overview of the situation in Estonia, allowing ministries to make informed decisions.

Search site