TALLINN — Estonia’s consumer price index increased in April in light of the inevitable rise in energy and gas prices that depend on commodity indexes.
Statistics Estonia announced Friday that the country’s CPI increased by 2.9 percent year-on-year compared to April 2009. Compared to March, the rise was 0.5 percent. The prices of consumer goods rose by 3.8 percent and services rose by 1.2 percent. Manufactured goods went up by [private_supervisor]5.7 percent and food products increased by 1.5 percent compared to April last year.
The index was largely affected by high gas prices, which made a 32.3 percent jump. Another important factor was energy price which increased by 10.9 percent. The highest increase was made in the prices of eating oil by 46.7 percent and fresh vegetables by 54.4 percent compared to the same period last year.
According to Swedbank analyst Annika Paabut, when it comes to food prices the low reference base conditioned the change in CPI. The price rise in the near future will be largely affected by the base because prices made their slowest gains during this period last year. Continuously growing energy prices will have a role, too.
“The domestic demand is still weak and people are trying to cut their expenses on entertainment and other products that can be prepared at home, but low demand pushes prices lower” Paabut told Baltic Reports. “In the annual comparison it can be seen that the prices of leisure activities and catering places have decreased.”
The analysts of the Ministry of Finance said that the consumer price rise is temporary, influenced by one-time factors such as gas, energy, and vegetable price rises in the whole of Europe. The price rise due to internal factors is not expected, but the sales tax in Tallinn produce some effect.
“Local farm products with cheaper prices coming on sale within upcoming months should ease the food prices,” finance ministry spokeswoman Piret Seeman told the media.
Ülo Kaasik, director of the department of fiscal politics in the Bank of Estonia told the media that the CPI rise was similar to the price rise in the eurozone. The Bank Of Estonia’s predicts that this year’s average rise in the consumer price index will be 1.3 percent.
CPI in Latvia to be the lowest?
However, just a two-hour drive from Tallinn and you’re in the country projected to have the largest CPI deflation in the world this year — Latvia.
The International Monetary Fund, which bailed out Latvia along with other lenders in 2008 and has kept a close watch on the country’s economic performance since, projects that Latvia’s CPI will decrease 3.7 percent this year, the most in the world. Meanwhile the troubled Baltic state’s gross domestic product is predicted to decrease 4 percent, the most in the world besides earthquake-struck Haiti.
The Baltic states “faced the crisis with unsustainable domestic booms that had fueled excessively large current account deficits and … [had] vulnerable private or public sector balance sheets [and] are expected to recover more slowly, partly as a result of limited room for policy maneuvers,” the IMF report read. [/private_supervisor] [private_subscription 1 month]5.7 percent and food products increased by 1.5 percent compared to April last year.
The index was largely affected by high gas prices, which made a 32.3 percent jump. Another important factor was energy price which increased by 10.9 percent. The highest increase was made in the prices of eating oil by 46.7 percent and fresh vegetables by 54.4 percent compared to the same period last year.
According to Swedbank analyst Annika Paabut, when it comes to food prices the low reference base conditioned the change in CPI. The price rise in the near future will be largely affected by the base because prices made their slowest gains during this period last year. Continuously growing energy prices will have a role, too.
“The domestic demand is still weak and people are trying to cut their expenses on entertainment and other products that can be prepared at home, but low demand pushes prices lower” Paabut told Baltic Reports. “In the annual comparison it can be seen that the prices of leisure activities and catering places have decreased.”
The analysts of the Ministry of Finance said that the consumer price rise is temporary, influenced by one-time factors such as gas, energy, and vegetable price rises in the whole of Europe. The price rise due to internal factors is not expected, but the sales tax in Tallinn produce some effect.
“Local farm products with cheaper prices coming on sale within upcoming months should ease the food prices,” finance ministry spokeswoman Piret Seeman told the media.
Ülo Kaasik, director of the department of fiscal politics in the Bank of Estonia told the media that the CPI rise was similar to the price rise in the eurozone. The Bank Of Estonia’s predicts that this year’s average rise in the consumer price index will be 1.3 percent.
CPI in Latvia to be the lowest?
However, just a two-hour drive from Tallinn and you’re in the country projected to have the largest CPI deflation in the world this year — Latvia.
The International Monetary Fund, which bailed out Latvia along with other lenders in 2008 and has kept a close watch on the country’s economic performance since, projects that Latvia’s CPI will decrease 3.7 percent this year, the most in the world. Meanwhile the troubled Baltic state’s gross domestic product is predicted to decrease 4 percent, the most in the world besides earthquake-struck Haiti.
The Baltic states “faced the crisis with unsustainable domestic booms that had fueled excessively large current account deficits and … [had] vulnerable private or public sector balance sheets [and] are expected to recover more slowly, partly as a result of limited room for policy maneuvers,” the IMF report read. [/private_subscription 1 month] [private_subscription 4 months]5.7 percent and food products increased by 1.5 percent compared to April last year.
The index was largely affected by high gas prices, which made a 32.3 percent jump. Another important factor was energy price which increased by 10.9 percent. The highest increase was made in the prices of eating oil by 46.7 percent and fresh vegetables by 54.4 percent compared to the same period last year.
According to Swedbank analyst Annika Paabut, when it comes to food prices the low reference base conditioned the change in CPI. The price rise in the near future will be largely affected by the base because prices made their slowest gains during this period last year. Continuously growing energy prices will have a role, too.
“The domestic demand is still weak and people are trying to cut their expenses on entertainment and other products that can be prepared at home, but low demand pushes prices lower” Paabut told Baltic Reports. “In the annual comparison it can be seen that the prices of leisure activities and catering places have decreased.”
The analysts of the Ministry of Finance said that the consumer price rise is temporary, influenced by one-time factors such as gas, energy, and vegetable price rises in the whole of Europe. The price rise due to internal factors is not expected, but the sales tax in Tallinn produce some effect.
“Local farm products with cheaper prices coming on sale within upcoming months should ease the food prices,” finance ministry spokeswoman Piret Seeman told the media.
Ülo Kaasik, director of the department of fiscal politics in the Bank of Estonia told the media that the CPI rise was similar to the price rise in the eurozone. The Bank Of Estonia’s predicts that this year’s average rise in the consumer price index will be 1.3 percent.
CPI in Latvia to be the lowest?
However, just a two-hour drive from Tallinn and you’re in the country projected to have the largest CPI deflation in the world this year — Latvia.
The International Monetary Fund, which bailed out Latvia along with other lenders in 2008 and has kept a close watch on the country’s economic performance since, projects that Latvia’s CPI will decrease 3.7 percent this year, the most in the world. Meanwhile the troubled Baltic state’s gross domestic product is predicted to decrease 4 percent, the most in the world besides earthquake-struck Haiti.
The Baltic states “faced the crisis with unsustainable domestic booms that had fueled excessively large current account deficits and … [had] vulnerable private or public sector balance sheets [and] are expected to recover more slowly, partly as a result of limited room for policy maneuvers,” the IMF report read. [/private_subscription 4 months] [private_subscription 1 year]5.7 percent and food products increased by 1.5 percent compared to April last year.
The index was largely affected by high gas prices, which made a 32.3 percent jump. Another important factor was energy price which increased by 10.9 percent. The highest increase was made in the prices of eating oil by 46.7 percent and fresh vegetables by 54.4 percent compared to the same period last year.
According to Swedbank analyst Annika Paabut, when it comes to food prices the low reference base conditioned the change in CPI. The price rise in the near future will be largely affected by the base because prices made their slowest gains during this period last year. Continuously growing energy prices will have a role, too.
“The domestic demand is still weak and people are trying to cut their expenses on entertainment and other products that can be prepared at home, but low demand pushes prices lower” Paabut told Baltic Reports. “In the annual comparison it can be seen that the prices of leisure activities and catering places have decreased.”
The analysts of the Ministry of Finance said that the consumer price rise is temporary, influenced by one-time factors such as gas, energy, and vegetable price rises in the whole of Europe. The price rise due to internal factors is not expected, but the sales tax in Tallinn produce some effect.
“Local farm products with cheaper prices coming on sale within upcoming months should ease the food prices,” finance ministry spokeswoman Piret Seeman told the media.
Ülo Kaasik, director of the department of fiscal politics in the Bank of Estonia told the media that the CPI rise was similar to the price rise in the eurozone. The Bank Of Estonia’s predicts that this year’s average rise in the consumer price index will be 1.3 percent.
CPI in Latvia to be the lowest?
However, just a two-hour drive from Tallinn and you’re in the country projected to have the largest CPI deflation in the world this year — Latvia.
The International Monetary Fund, which bailed out Latvia along with other lenders in 2008 and has kept a close watch on the country’s economic performance since, projects that Latvia’s CPI will decrease 3.7 percent this year, the most in the world. Meanwhile the troubled Baltic state’s gross domestic product is predicted to decrease 4 percent, the most in the world besides earthquake-struck Haiti.
The Baltic states “faced the crisis with unsustainable domestic booms that had fueled excessively large current account deficits and … [had] vulnerable private or public sector balance sheets [and] are expected to recover more slowly, partly as a result of limited room for policy maneuvers,” the IMF report read. [/private_subscription 1 year]
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