Estonian Finance Minister Jurgen Ligi said faster inflation is “nothing tragic” and forecast the pace of price increases to moderate later this year.
“What will happen to inflation depends very much on other countries, on commodity prices in the world market,” Ligi, whose country joined the euro region this year, said in an interview late yesterday after a meeting with European counterparts in Brussels. “It’s not too high.”
Estonian inflation may accelerate to 4 percent this year after averaging 3 percent in 2010, the Finance Ministry said on Jan. 7. The European Central Bank aims to keep inflation just below 2 percent in the 17-member currency union. Estonian central bank Governor Andres Lipstok has said price increases can’t be linked to the adoption of the euro.
“Inflation will come down” later this year “according to our forecasts,” Ligi said.
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