According to the analyst of the fiscal policy department of the Ministry of Finance Kristjan Pungas, inflation in the last months of last year and in the totals of the year was slightly lower than predicted, primarily because of more significant decrease in prices
for energy and continued cautiousness of consumers in
spending. /nginx/o/2025/01/08/16584336t1hba15.jpg)
Photo: Mihkel Maripuu / Postimees
An analyst of the Department of Fiscal Policy Ministry of Finance Kristian Pungas said, inflation in the last months of last year and in the totals of the year was slightly lower than predicted, primarily
because of more significant reductions in prices for energy and continued consciousness of consumers in spending.
According the Department of Statistics, in December prices increased by 0.1 percent compared with the previous month and by 3.9 percent compared with December last year. In total for the year the price increase was 3.5%, which is the slowest rate over the last four years. In the Eurozone, preliminary estimates of inflation accelerated to 2.4% because of slightly increased costs of services and the continuation of decreases in prices for energy.
“In December the levels of prices were mainly influenced by increases in prices for fuel and pre-Christmas discounts. Despite the fact that by the end of the year the price of oil has reached the lowest level in the last years, the weakening euro has led to an increase in the price of motor fuel. For three months.The euro decreased by 6% in relationship to the USD, and this trend is continued at the beginning of the year. From one side, the recovery of the eurozoneeconomyisslow,whichhasledtoreducedthegrowthforecasts.On theotherside,theeconomicindicatorsoftheUShavebeenbetterthanexpected,whichhaspreventedthereductionofinterestrates.The expectedTrump’sentryintothepresidencyalsocontributedtothestrengtheningofthedollar,
KristianPungas explained.
