Data from Statistics Estonia show that yearly consumer price inflation in November was 4.9%. Without the effect of new taxes and tax rises this year, inflation would actually have been around 2% in Estonia in November, which is similar to the rate across the whole of the euro area. Prices were 0.2% lower in November than in October because prices fell for tourism services, though this was a seasonal effect. Prices rose again for food products after a couple of quieter months, while energy prices rose as is usual when the heating period starts.

Energy prices, which have been holding inflation in check through out the year, started to rise again in November. More electricity is consumed when the weather turns colder, and that lifted the exchange price of electricity back to around 100 euros per megawatt hour in November. Prices of motor fuels were also up in November, by 8.7%, having been cheaper in previous months. Petrol station chains started to cut prices one after another in September, and petrol prices remained at the lower level in October.

Inflation for manufactured goods has been steadily falling this year and came down to close to 1% in November. Clothes and footwear were 6% cheaper in November than a year earlier, which is one of the steepest falls in price in the countries of the euro area. The fall in price helped increase retail sales volumes in clothing and footwear. Prices for tourism services, especially package holidays, hotels and air tickets, have become very volatile and highly dependent on seasonal demand and on promotional campaigns.

Inflation will average around 5% in 2025, but Eesti Pank forecasts that it will slow in 2026 and come down to 3.1%. The inflation caused by tax rises will be less next year, but price pressures will come in the years ahead from the large budget deficit and the consequent injection of funds into the economy.

For further information:
Hanna Jürgenson
Communications officer
5692 0930
Email: [email protected]
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