Analytics, Estonia, Inflation, Markets and Companies

The central bank noted that on the basis of the first month of the year, more and more enterprises are reacting to the changes in the economic situation by adjusting prices and despite the surge in the prices of water and in taxes, the consumer shopping cart became cheaper.

In the past three months, the prices have fallen by more than 1% – hence the inflation rate pressures continue falling.

According to the Bank of Estonia, in near future it is to be expected that prices of dairy products and of transportation services will fall, largely due to cheaper prices of motor fuels and other raw materials on the global market.

Prices for end consumers of heating energy have not fallen as yet due to the cheapening of energy carriers, but due to lower prices of imported natural gas, these prices should start falling in coming months.

The central bank estimates that the inflation rate will continue falling and in its principal scenario, Bank of Estonia expects this year's inflation rate to be 2%.