Prices in Estonia Drop For 2nd Month
Estonia experienced a second-straight month of deflation in the consumer price index in August.
Prices dropped 0.3 percent in August, and 0.7 percent compared to August 2013, according to Statistics Estonia.
Goods were 0.7 percent cheaper in a year-on-year comparison, mainly driven by a drop in electricity, heat energy and fuels. Household electricity costs were 7.6 percent cheaper and heat energy dropped 3.9 percent. A 20 percent drop in vegetable prices, as well as a 2.7 percent rise in alcohol and 6.3 increase in tobacco prices, also influenced the index.
In the food category, conserved milk increased the most, 19 percent, and the price of sugar and apples decreased the most (37 and 31 percent, respectively).
The price of services dropped 0.8 percent year-on-year.
The month-on-month deflation was powered mostly by a 21 percent drop in the price of fresh vegetables. The prices of sweet peppers decreased 45 percent, and tomatoes dropped 38 percent. The end of clothing sales and footwear, and 2.4 percent cheaper motor fuel also had a big impact.