Housing costs main factor in 3.1 percent May inflation rate ({{contentCtrl.commentsTotal}})

The Bank of Estonia expected inflation in 2019 to remain below 3 percent (picture is illustrative).
The Bank of Estonia expected inflation in 2019 to remain below 3 percent (picture is illustrative). Source: Scheffbuch/Caro/Scanpix

Inflation was 3.1 percent on year in May 2019, Statistics Estonia reports, and was 0.2 percent compared with the previous month. The consumer price index was most affected by rises in the housing and transport sectors. Housing costs include heating, fuel etc.

The rise represents a slight excess on the projected rate for 2019, which the Bank of Estonia forecast to remain no higher than 3 percent.

The consumer price index for goods was 2.3 percent year-on-year (y-o-y), and 4.7 percent for services. Regulated prices for goods and services rose by 4.1 percent and for non-regulated prices by 2.9 percent y-o-y.

Housing costs contributed over a quarter of the total increase in the index, Statistics Estonia reports.

Seventy percent arose from electricity, gas and other fuels costs, with electricity that reached homes 6.3 percent more expensive and solid fuels 14.2 percent more expensive y-o-y.

Nearly a quarter of the total increase derived from food and non-alcoholic beverages, the bulk arising from the cost of vegetables, which increased by 32 percent y-o-y.

Petrol prices rose by 4.4 percent and diesel by 6.8 percent y-o-y.

Of food products, the biggest year-on-year price increases were seen for fresh vegetables (53%) and potatoes (46%), and the biggest price decreases for fresh fruits and eggs (11%).

Changes on month

Transport was the culprit sector in inflation in May when compared with April 2019, though not all prices rose.

Plane tickets purchased for the month of May were 23 perecent cheaper than thse bought for April, Statistics Estonia reports.

Accommodation services saw a 16.5 percent rise on month, and food and non-alcoholic beverages also experience increases. Again, price rises in vegetables, at 2.1 percent on month, were a factor.

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Statistics Estonia is a government agency under the aegis of the Ministry of Finance, and provides public institutions, business and research circles, international organizations and individuals with reliable and objective information on the economic, demographic, social and environmental situation and trends in Estonia.

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Editor: Andrew Whyte

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