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Bank of Estonia: prepare for price growth to accelerate again in the second half of the year

Банк Эстонии: готовьтесь к тому, что во второй половине года рост цен снова ускорится

The rate of price growth, which stood at five percent in January of this year, fell steadily in the first half of the year, mainly due to cheaper energy. Price growth in June was the slowest in three years, but inflation is likely to pick up slightly in the second half of the year. According to Rasmus Kattai, inflation will accelerate slightly in the second half of the year, as energy prices will rise for seasonal reasons, and rising prices for food raw materials will gradually affect retail food prices. According to Rasmus Kattai, inflation will accelerate slightly in the second half of the year, as energy prices will rise for seasonal reasons, and rising prices for food raw materials will gradually affect retail food prices. Photo: Estonia Pank

The rate of price growth, which stood at five percent in January of this year, fell steadily in the first half of the year, mainly due to cheaper energy. Price growth in June was the slowest in three years, but inflation is likely to pick up slightly in the second half of the year.

Translation: Sergey Svetlov

“Compared to last year, gas and air tickets have fallen the most in the consumer basket – by about ten percent. Prices for fruits and vegetables, as well as for hotel services, have dropped significantly, which also contributed to a slowdown in inflation,” commented Rasmus Kattai, an economist at the Bank of Estonia.

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