OREANDA-NEWS. March 12, 2012. According to Statistics Estonia, prices rose 0.4% in February from January and 4.2% from a year ago. Euro area inflation was 2.7%, based on Eurostat's preliminary estimates, reported the press-centre of Eesti Pank.

Although growth in the sales revenues of Estonian companies slowed in the fourth quarter of 2011, revenues still posted record growth in euros. Profits were slightly lower than they were in the boom years. These data show that the Estonian economy has coped relatively well with the crisis in the external environment. Labour cost growth was comparable to growth in sales revenues and profits, which means that the price pressures stemming from the labour market have remained subdued.

The current price of Brent crude oil, 93 euros per barrel, is higher than the 80 euros expected for this year. Eesti Pank expects the average annual HICP to rise 2.8% in 2012. Should the oil price remain at its current level, inflation may also be higher than expected.