Swedbank: Inflation around the corner ({{commentsTotal}})


With average salary having risen 7-8 percent in 12 months, higher inflation is just around the corner, with purchasing power rise set to stall, said Estonia's biggest private bank, Swedbank.

According to Statistics Estonia, the average gross monthly salary is 1,045 euros, up 7 percent in 12 months, while the Tax and Customs Board puts the median net salary at 733 euros, up 8 percent since the same period a year ago.

Salary hikes have been the highest in the low-end of the scale. Due to low inflation, and deflation in sectors such as energy, the average purchasing power has increased in the last year, Swedbank said.

General economic growth has been driven by consumption, while export volumes have plummeted by 10 percent since September 2014.

“But consumption-based economic growth cannot last long. If export figures do not improve, salary growth will slow sooner or later,” the bank said.

Salary increases are set to continue as labor shortage is still a problem and the minimum wage will jump 10 percent on January 1, 2016. The bank said purchasing power growth will slow as prices will begin to increase and labor tax cuts will be far smaller compared to the beginning of 2015.

Editor: J.M. Laats

+{{cc.replyToName}} {{cc.body}}
No comments yet.
Logged in as {{user.alias}}. Log out
Login failed

Register user/reset password

Name needs to be fewer than 32 characters long
Comment needs to be fewer than 600 characters long


Independence Day: Estonia’s way into the future isn’t a race

There is a lack of connection between the Estonian state, and the people who live here. While it expects a lot of the state, Estonian society doesn’t seem ready to contribute, writes Viktor Trasberg.

Lotman: Security academy would be crucial Estonian identity point in Narva

In an opinion piece published by Eesti Päevaleht, Tallinn University professor Mihhail Lotman found it important to overcome the mental barrier separating Ida-Viru County from the rest of Estonia.