Price fall, analysts ponder

  • 2003-07-10
Estonian analysts disagree about the recent fall in consumer prices, with the two leading banks diverging in their assessments.
Hansapank analyst Maris Lauri said the June fall had been expected, but a year-on-year fall in regulated prices on goods and services was registered for the first time since prices were recorded.
Lauri said the fall would slow down in the future, particularly in relation to foodstuffs, which played a large role in the June fall of the consumer price index.
Next month there will be a year-on-year rise in retail prices, Lauri said.
Uhispank chief analyst Sven Kunsing said the Statistical Office's figures were surprising once again, as there was no basis for such a fall in Estonia given the European orientation in its economic affairs.
"There's a struggle for existence going on in the local retail [market], and it looks as if they are intent on competing each other out of existence," he said.