Between October and November this year, the CPI fell by 0.7 percent.

In October, the annual CPI increase had been 4.5 percent, the highest monthly inflation rate of the year; between September and October the growth stood at 0.8 percent.

This year, both August and September's on-year CPI growth rate was 3.2 percent.

Economist: Inflation to accelerate further in 2025

Lenno Uusküla, chief economist at Luminor, said inflation for 2025 is expected to reach nearly four percent, with prices rising even faster next year due to "the introduction of several new taxes."

Assessing November's price flutcuations, Uusküla explained: "In October, airline tickets saw a significant price increase, which drove up the overall price level without a long-term economic basis. November's price decline is primarily due to the normalization of airline ticket prices."

Despite the temporary fall, Uusküla emphasized that "beyond one-off extraordinary price leaps, Estonia continues to experience inflation higher than is sustainable for the economy."

He added: "Already high prices continue to go up, hindering Estonia's export competitiveness. High costs may stem from either low volumes or inefficient management, which erodes Estonia's economic growth both in the short and long term."

Since December 2019, prices in Estonia have risen by 40.9 percent overall, highlighting significant long-term inflationary pressures.

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