Triinu Tapver, an analyst with Estonian bank LHV, noted that inflation could even exceed six percent.

She said: "Our estimate at the end of last year was 4.5 percent. It now actually seems to be coming in at above six percent, even 6.2–6.5 [percent]. It depends on how the issue with customs duties plays out, and how U.S. tariffs affect things."

"From an Estonian perspective, we top the inflation rankings, and in terms of costliness, we're reaching – and at times even surpassing – the European average," Tapver went on.

Analysts note that the likely drivers of inflation are energy and food.

Kristjan Anderson, head of business accounting at Selver, said: "Various forecasts have suggested that food products will likely take the lead again and push price growth closer to 6 or 7 percent."

"We're talking about global market prices for cocoa, coffee, oil. The latest one – though it hasn't yet reached store shelves – could be an increase in egg prices," Anderson added.

Rapid inflation has made people more conscious of what they are putting in their shopping baskets. Anderson said that of over 20 years working in retail, never before has he seen discounted items made up to half of a shopping basket.

He said: "If you look at product groups where prices have risen by more than 10 percent, then in the first months of the year, candies saw a 10–15 percent drop in [sales] volume – that's the harsh reality. On Valentine's Day and International Women's Day, significantly fewer boxes of chocolates and sweets got purchased."

The picture was the same for the electronics goods store "Aktuaalne kaamera" spoke to.

Kaire Koik, board member of the Klick chain, reported that March was a surprisingly weak month.

"Consumer willingness to spend is very weak. The issue isn't that people don't have money: It's more that people are a bit anxious, waiting, and just not spending," she said.

"I hope things will stabilize in the near future. But of course, VAT hike affects us a bit. Prices are rising. We are having to offset part of the price increase from our own profits," Koik continued.

The Bank of Estonia published its latest forecast last week, in which it estimated this year's inflation at 6 percent.

Other institutions are also likely to revise their forecasts.

A flash estimate from Statistics Estonia indicated that rapid inflation continues in Estonia, at 4.3 percent on year to March.

This is a preliminary flash estimate and is not broken down in detail.

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