Estonia's annual inflation slows to 2.3%, lowest since April 2021

The Consumer Price Index (CPI) rose by 2.3 percent on year to June 2025, state agency Statistics Estonia reported.
Goods were 1 percent and services 4.2 percent more expensive than in June last year, Statistics Estonia said.
The CPI fell by 0.5 percent between May and June.
Commenting on the results, Lauri Veski, the Consumer Price Statistics Service Manager at Statistics Estonia, said that the 0.5 percent on-month CPI fall is nothing unusual – there were several similar decreases last year, most recently in December, he noted, but the on-year figure was the lowest for over five years.
"However, the year-on-year increase in June was 2.3 percent, which is the smallest rate since April 2021. To an extent, this can be explained by the high index value in June 2025. But a more significant factor has been the decrease in prices in more than half of the commodity groups, including food and non-alcoholic beverages which has the biggest weight in the calculation of the consumer price index," Veski added.
Compared with June 2025, the consumer price index was mainly influenced by a 7.6 percent rise in housing costs and a 7.5 percent increase in transport costs. Housing costs were driven by electricity and natural gas prices, which rose by 18.7 percent and 30.8 percent, respectively.
Compared with June 2025, the consumer price index was mainly influenced by a 7.6 percent rise in housing costs and a 7.5 percent increase in transport costs. Housing costs were driven by electricity and natural gas prices, which rose by 18.7 percent and 30.8 percent, respectively.
In June, prices for alcoholic beverages and tobacco increased by 8.9 percent year on year. Alcohol prices rose by 5.8 percent and tobacco prices by 16.4 percent, partly due to higher excise duties introduced in January 2026 and July 2025.
Compared with June 2025, food prices rose by 2.3 percent for ready-made food, 0.9 percent for fresh or frozen meat, 5.6 percent for eggs and 5.5 percent for fish, while falling 6.7 percent for vegetables, 23.1 percent for butter and 11.6 percent for apples and stone fruits.

Many products fell in price between May and June.
Compared with May, the CPI fell mainly as a result of lower prices for food and non-alcoholic beverages (which fell by 1.2 percent), petrol (down by 5.5 percent), diesel fuel (fell 8.6 percent) and clothing and footwear (3.8 percent), partly offset by higher prices for holiday trips (8.3 percent), electricity (1.5 percent) and rents (1.4 percent).
Food prices were mainly affected by lower prices for fresh vegetables (dropped by 16.2 percent), fresh berries (down by 17.6 percent) and tropical fruits (9.9 percent), partly offset by higher prices for chocolate (2.4 percent) and citrus fruits (4.3 percent).
More detailed information is available from Statistics Estonia here, here and here.
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Editor: Andrew Whyte












