Consumers push prices up

  • 2011-08-10
  • From wire reports

TALLINN - Estonia’s inflation was broad-based in July, including food, energy and several service groups, said Eesti Pank economist Peeter Luikmel, reports news agency LETA. Compared to June, the consumer price index went up by 0.5 percent in July and inflation accelerated to 5.2 percent, year-on-year.

Preliminary data show that in the eurozone, inflation slowed to 2.5 percent. Last week, the governing council of the ECB decided to leave the minimum bid rate on main refinancing operations at 1.5 percent.
“The price level in Estonia is affected by high commodity prices and growing domestic consumption. The price of transport and recreational services went up by 0.8 percent in June,” said Luikmel.

Goods were 6.6 percent and services 2.7 percent more expensive compared to July 2010.
Explaining the trends, Luikmel said that economic activity has declined in advanced economies, so external inflationary pressures are easing. “However, the insecurity brought about by the debt crisis may cause additional price fluctuations in commodity markets,” Luikmel said.