Flash comment: Estonia - Inflation has accelerated
Inflation has accelerated in Estonia
• In March, in Estonia, consumer prices rose by 1.1%, over the year.
• Higher prices of motor fuels, food, and electricity contributed.
• Swedbank expects inflation to reach 1.5% in 2021 and 2.0% in 2022.

Annual inflation has accelerated from 0.2% in January to 1.1% in March. In March, goods were 0.5% and services 2.0% more expensive than one year ago. Among services, the prices of health services have risen the most, especially the prices of dental services.



The price of motor fuels has been pushed up by the price of oil which has reached its pre-crisis level. Food prices have risen rather modestly in recent months. The prices of clothing and footwear have decreased, partly due to lower demand and new restrictions that have closed down most shops.

Regarding housing, rental prices are still below last year’s level as the supply of rental apartments remains high. The price of electricity has been elevated due to higher demand as a result of colder weather this year.

Swedbank expects inflation to reach 1.5% in 2021 and 2.0% in 2022. Demand for different goods and services should gradually strengthen as restrictions are relaxed and people start spending their pension and other savings. 2022’s inflation is lifted by several excise tax hikes.




For more information about this report, please contact Ms. Liis Elmik, liis.elmik@swedbank.ee, +372 888 7206.

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