Estonian CPI up 3.5%

TALLINN — Estonian consumer price index made a 3.5 percent hike in June compared to the same period last year due the rise of energy and fuel prices spurred by tax hikes, the country’s central statistics bureau reported on Wednesday.

The electricity, energy, and fuel prices rose by 12.2 percent and motor fuel by 18.8 percent, being the main reason why the index shot up so rapidly. The price of fresh vegetables rose by 42.5 percent and heating oil 34.7 percent — those rose the most.

From May the index rose by 0.4 percent. Estonian consumers had to pay 3.7 percent more for goods, and 3.3 percent more for cervices in June. The prices of food products went up by 3.2 percent.

This may not be part of a larger wave of price hikes, which were commonplace with the runaway inflation of the “Baltic Tiger” boom.

Annika Lindblad, an economist with Nordea AB in Helsinki told BusinessWeek that she did not expect prices to climb significantly for the rest of the year.

Weak domestic demand and declining wages will keep price rises subdued this year,” Lindblad said.

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