Estonia's inflation rose to 6.4 percent in September

Money.
Money. Source: Siim Lõvi /ERR

Inflation in Estonia accelerated from 5 percent in August to 6.4 percent in September, a preliminary estimate by Eurostat shows.

Eurozone consumer prices rose at their fastest pace since 2008 in September as energy costs skyrocketed, official data showed on Friday.

Eurostat, the EU's official statistics agency, said eurozone inflation reached 3.4 percent on an annualized basis, with energy prices increasing by 17.4 percent.

Inflation in Estonia rose to 6.4 percent in September. The indicator accelerated from 3.6 percent to 4.6 percent in Latvia, from 5 percent to 6.3 percent in Lithuania and from 1.8 percent to 2.1 percent in Finland.

The rise in costs was far above the 2.0 percent target at the European Central Bank and will raise pressure on EU governments to take measures to ease the energy cost burden.

Looking at the main components of euro area inflation, energy is expected to have the highest annual rate in September - 17.4 percent, compared with 15.4 percent in August.

This is followed by non-energy industrial goods - 2.1 percent, compared with 2.6 percent in August; food, alcohol and tobacco - 2.1 percent, compared with 2.0 percent in August; and services - 1.7 percent, compared with 1.1 percent in August.

ECB President Christine Lagarde insists high inflation remains a temporary phenomenon linked to the coronavirus pandemic that has upset supply chains and disrupted the energy market.

But Eurostat said core inflation, which strips out energy and other items, stood at 1.9 percent, up from 1.6 percent a month earlier.

Energy prices are becoming a political flashpoint in Europe, with countries considering a wide range of emergency plans to lower the prices for consumers.

Brussels is preparing a series of short-term measures such as cutting value-added tax and excises on energy, in hopes of preserving commitments for more renewable energy sources.

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Editor: Helen Wright

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