"In addition to rising food prices, the preliminary estimate indicates that the increase in prices for holiday travel and accommodation also played a role, though these are likely temporary in nature. Offsetting effects came from lower housing costs as well as clothing and footwear prices," said Lauri Veski, head of the consumer prices team at Statistics Estonia.

Economist: Price advance picked up even before VAT hike

"This is the fastest price increase we've seen so far this year. As a reminder, prices rose by 5 percent year-on-year in February," commented Bigbank economist Raul Eamets on the index growth. "Current price statistics suggest that the average annual inflation rate is very likely to reach 6 percent or even slightly higher."

Statistics Estonia will publish the June consumer price index data on July 7 and more detailed data for the harmonized index of consumer prices on July 16.

The consumer price index is weighted according to the consumption structure of Estonian residents in Estonia, while the harmonized index also accounts for tourists and is comparable to the international Harmonized Index of Consumer Prices (HICP).

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