Inflation up 2.2% in July, lowest in more than 5 years
The consumer price index (CPI) rose by 2.2 percent on year to July, state agency Statistics Estonia reported, the lowest rise since April 2021.
Goods were 1 percent costlier and services 3.9 percent more expensive in July 2026 than in the same month in 2025.
Between June and July 2026, the CPI rose by 0.5 percent, the agency said. The cost of living in certain areas also jumped up between June and July, particularly for garbage disposal, following recent reforms.
Commenting on the results, Lauri Veski, CPI statistics services manager at Statistics Estonia, said the year-on-year comparison once again shows a relatively small rise in prices. "The last time the annual price increase was this small was in April 2021. Although the prices of housing, transport, and alcohol and tobacco have gone up over the year, the rise in the index is being held back by the cheaper prices of food and non-alcoholic beverages," Veski said.
Housing-related prices were affected mainly by tariff changes to services that took effect in July. A recent garbage reform meant the price of waste collection went up by over 50 percent just between June and July this year, while
Water supply got 6.6 percent more expensive over the month, driven by the price increase in Tallinn. Rent went up by 4 percent, while electricity got 4.1 percent cheaper.
"Compared with July last year, however, electricity was still 13.9 percent more expensive, mainly because of the shortage of hydropower caused by the heat waves. Piped gas has also become 26.2 percent more expensive over the year," specified Veski.
Compared with June, petrol prices rose by 1.2 percent and diesel by 0.4 percent. Compared with July 2025, petrol was 6.2 percent and diesel 12.8 percent more expensive, while international flights were 11.4 percent cheaper.
Alcoholic beverages and tobacco became 6.4 percent more expensive over the year, with Veski noting the excise duty hike at the start of this year needed to be taken into account. "In contrast, food and non-alcoholic beverages became 1.6 percent cheaper," he added.
Food prices rose 0.4 percent from June. Year on year, prices fell 10.8 percent for fruits and nuts, 3.1 percent for milk, dairy products and eggs, and 3.8 percent for vegetables. Fish and fish products rose 6.1 percent and soft drinks 4 percent.
More detailed information is available from Statistics Estonia here, here and here.
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Editor: Andrew Whyte
