Estonian inflation slowed to the weakest pace in 28 months in December on lower food and transport costs.
Consumer prices rose 3.5 percent from a year earlier, the least since August 2010, compared with a 3.6 percent advance the previous month, the statistics office, based in the capital, Tallinn, said on its website today. That’s in line with the 3.5 percent median estimate in a Bloomberg survey of three analysts. Prices fell 0.1 percent from November.
Declines in oil and food costs slowed last year’s average annual inflation in the newest euro-area member to 3.9 percent from 5 percent in 2011, the statistics office said.
In December, food was 5.4 percent more expensive than a year earlier, compared with 5.8 percent in November. Transport costs increased 0.6 percent from a year earlier last month, down from 1.6 percent in November.
This year, inflation will be temporarily boosted in January by Estonia’s electricity market opening and as state-owned utility AS Eesti Energia starts buying carbon-emission quotas from the market, the central bank said last month. Inflation may be further boosted by large structural unemployment, labor deficit and higher-than-forecast oil prices, the bank said.