Estonia: Inflation decelerates in January from the prior month
Latest reading: Harmonized consumer prices increased 3.8% on a year-on-year basis in January, following a 4.0% rise in the previous month. January’s reading was the weakest since November 2024 but remained above the euro area average of 1.7% and the ECB’s 2.0% target.
Relative to the prior month’s data, there were reduced price pressures for transportation (-0.8% in annual terms vs +7.6% in December) and restaurants and hotels (+5.1% vs +5.2% in December). In contrast, there were higher price pressures for food and non-alcoholic beverages (+6.2% vs +5.6% in December), housing and utilities (+5.6% vs +0.8% in December) and recreation (+3.6% vs +2.8% in December).
Meanwhile, consumer prices rose 3.7% in annual terms in January, following a 4.1% rise in the prior month.
Finally, harmonized consumer prices rose 0.78% in January in month-on-month terms, following a 0.39% fall in the prior month.