Estonia’s prices rise 3.6% year on year in October estimate

Consumer prices in Estonia rose 3.6% year on year in October and 0.6% from September, according to a preliminary estimate from Statistics Estonia reported by ERR.

Bank analysts expect inflation to accelerate in the coming months, primarily because of higher energy prices. Swedbank economist Liis Elmik said electricity exchange prices rose in October as renewable energy output fell. Oil and gas prices also increased as the conflict in the Persian Gulf region intensified.

Swedbank said futures markets expect crude oil prices to remain above $100 a barrel until the end of the year, with some easing in price pressures expected only next year.

Statistics Estonia will publish the final consumer price index figures on Friday. Bigbank economist Raul Eamets noted that September’s preliminary estimate put annual inflation at 3.1%, while the revised figure was 3.5%. He said October’s final increase could also be higher than the preliminary estimate.