Consumer prices rose by 11.3% in a year and -0.1% in a month in Estonia. Although electricity and gas prices fell compared to December, food prices rose significantly. Food prices showed such a rapid month-on-month growth rate previously 15 years ago in October 2007.
About half of the 11-percent price increase came from higher energy prices. The prices of motor fuels rose by a quarter in a year. Electricity and heating prices jumped by half. The annual growth in electricity and gas prices decelerated markedly in January compared with December, as the government lowered network charges and set a price cap, and the stock price of electricity fell. Rental prices rose by 15.3%, over the year.
The rise in food prices was faster than expected. In January, food prices rose by 9.3 percent year-on-year. The rise in food prices was driven by vegetables and fish.
Rapid price increases will continue in the coming months. Heating and fuels will become even more expensive in February. Electricity and gas prices will also remain high. February is usually the coldest month of the year, so demand for energy remains strong. The rise in prices may begin to ease in the summer months. Wage growth will accelerate in the coming months but will still be below price rises.
