Estonia’s annual inflation may drop below 4% in 2026, the Ministry of Finance forecasts, ERR reports. Kristjan Pungas, economic analyst at the ministry’s fiscal policy department, linked the projection to the easing of the conflict in the Middle East. He noted that Estonia’s inflation rate was one of the lowest in the eurozone in June 2026. Consumer prices in Estonia rose by 2.3% on year but fell by 0.5% on month in June 2026. In July 2026, the harmonised index of consumer prices, which includes spending by tourists, rose by 2% on year and 0.5% on month, according to Statistics Estonia’s flash estimate, ERR reports. The Ministry of Finance’s spring forecast projected annual inflation of 4% in 2026. The ministry will release its summer forecast on 27 August 2026. Meanwhile, the Bank of Estonia expects inflation to drop to 3.4% in 2026, Baltic News reports. Estonia’s annual inflation stood at 4.8% in 2025.
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