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Estonian Price Growth Slowest in 23 Months on Clothing, Fuel

Estonia’s inflation rate fell to its lowest level in almost two years in July as prices for clothing and transport eased.

Consumer prices increased 3.6 percent from a year earlier, the slowest since August 2010 and down from 3.9 percent in June, the statistics office, based in the capital, Tallinn, said today on its website. That matched the median estimate in a Bloomberg survey of four analysts. Prices rose 0.2 percent from the previous month.

Inflation in the Baltic nation will probably slow in the next few months as fuel prices and housing costs ease, the Finance Ministry said last month. Slowing price growth would support domestic spending as the European Union’s fastest-growing economy last year loses steam because of the euro area’s debt crisis.

Clothing prices, which carry a weighting of more than 5 percent in the consumer price index, fell 4.8 percent from the previous month due to seasonal discounts, while transport costs, the third biggest item in the basket with a 13 percent share, eased 0.5 percent for a second month as fuel became less expensive, according to the report.

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