Estonia met the inflation criterion

Martin Lindpere, Eesti Pank, economist

According to Statistics Estonia, the price level calculated on the basis of the consumer price index declined 0.2% in November and 2.1% year-on-year.

The Maastricht inflation criterion is calculated on the basis of the harmonised consumer price index (HCPI). Eurostat will publish the November HCPI data on 16 December. However, it can already be estimated that Estonia has met the inflation criterion.

Although the economic environment does not favour price rises, several tax amendments that increase the price level will enter into force in 2010. While these steps will speed up inflation, they do not pose a near-term threat to meeting the criterion.

According to Eesti Pank's autumn forecast, prices will grow by an average of 0.1% in 2009.