Estonia: Food prices continue to drive overall price growth

The continuing rise in prices in Estonia is driven by the increase in food prices, ERR reports. In June 2023, the growth of prices slowed down to 8.9% compared to the same month last year, according to preliminary data from Statistics Estonia. Compared to May 2023, prices went up by 0.8%, however. In both annual and monthly comparisons, the price increase is driven by food products. Viktoria Trasanov, head of the consumer prices team at Statistics Estonia, said that food and non-alcoholic beverages accounted for almost half of the overall price increase. SEB analyst Mihkel Nestor expects the rise in food prices to begin to come to an end soon. Lenno Uusküla, chief economist at Luminor Bank, noted that wage growth was now higher than inflation.