Estonia: Inflation likely to rise rapidly in autumn 2024: analysts

Inflation in Estonia is expected to increase as of autumn 2024, with overall inflation projected to reach 4% by the end of the year, according to some analysts, ERR reports. The analysts attribute the anticipated rise to persistently high energy prices and wage growth driving up service costs. Despite a significant 40% surge in grocery prices over the past two years, recent months have seen a slowdown, which is expected to reverse with more rapid price increases in autumn 2024. Estonia’s economic contraction is expected to continue in 2024, with a potential bottoming out in 2025, but it may take at least two more years for purchasing power to return to 2020 levels.