Estonia, Foodstuff, Inflation, Markets and Companies

"The producer sales prices of agricultural products in the first six months increased by approximately a quarter, including the price of meat by over 10% and the price of milk by over 40%. This will alleviate the situation of farmers, who have been operating with a loss since the beginning of last year," Elmik said in a press release.

The Estonian consumer price index increased 3.6% on year in July. Increase in food prices made up a third of the increase in consumer prices and was affected most by the increase in the price of dairy and meat products, Statistics Estonia said.

Swedbank estimates the price increase in Estonia to remain at 3% this year as a result of a hike in excise duties and the price of raw materials. "Increase in prices means that this year the purchasing power of earners will increase more slowly compared with previous years," Elmik said.

She said that the increase in consumption has decelerated regardless of the strong increase in the Estonians' sense of security. "In the first six months of this year the volume of retail trade increased only 2% compared to the same period the year before," Elmik said.

Statistics Estonia on Monday published the figures concerning inflation in July. The consumer price index was 0.7% higher in July than in June 2017 and 3.6% higher than in July 2016, the last time the annual inflation was this high was in June 2013. Goods were 3.4% and services 3.9% more expensive than in July 2016.