Survey: Rise in food prices delivering heaviest blow to Estonian residents' livelihoods

TALLINN - Nearly half of residents in Estonia find that their financial situation has worsened in the past year, while 38 percent of respondents have an income sufficient to cover their daily expenses but not allowing them to afford larger purchases, a financial confidence survey by SEB indicates.

Nearly half of the residents who participated in the survey said that their financial situation had worsened in the past 12 months. The main factor undermining the financial situation, according 86 percent of respondents, is the rise in the prices of food and essential goods. Among people aged 40-49, as many as 90 percent mentioned this as the number one reason. Increased housing costs are also a major concern, mentioned by 72 percent of respondents. However, only a tenth of respondents mentioned increased loan costs.

"Concerns about the rising prices of food, essential goods, and housing costs have certainly been exacerbated by the increase in VAT and other taxes, with more in terms of the former due in the summer. The rise in consumption taxes worsens the financial situation of the most vulnerable social groups and thereby exacerbates social problems," noted Elisabet Visnapuu, head of savings, investments, and pensions at SEB Estonia.

Nearly two in five respondents said their income is sufficient for buying food and clothing and even saving a little, but not enough to afford large purchases like a refrigerator or television. Slightly more than a fifth have enough money for food but not for clothing, and there's a similar proportion of those who can afford major purchases but lack sufficient funds for travel or a longer vacation abroad. According to the survey, 13 percent of the population can afford everything they desire.

"There are relatively few people, six percent, whose income is so small that it's difficult for them to even buy food. Residents of Lääne and Põlva counties have the greatest problem finding enough money to buy food, which once again indicates the peripheralization of Estonia's more remote areas. In these areas, there are inevitably fewer jobs than in the population hubs and the jobs offered there are usually also lower-paid," Visnapuu said.

The survey for SEB Estonia was conducted by the pollster Norstat by interviewing 1,000 Estonian residents aged 18-74 in January 2025.