OREANDA-NEWS. April 12, 2012. According to Statistics Estonia, the CPI increased 1% in March compared to February and 4.4%, year-on-year. Euro area inflation slowed to 2.6%, according to preliminary estimates, reported the press-centre of Eesti Pank.

Tobacco products and motor fuels, the price of which went up by 7.6% and 2.9%, respectively, compared to the previous month, were the primary price growth drivers. The prices of tobacco products grew due to the January rise in excise duties. The price increase of oil may have been one of the reasons behind more expensive plane tickets.

Core inflation, which mostly reflects domestic price pressures, remained at 2%, year-on-year, in March. The cheapening of communication services, by 8.3%, year-on-year, played a major role here.

Last year, unit labour costs fell, though at a decelerating rate. Looking at domestic market oriented services, price pressures got stronger in the real estate cluster. Intensified wage pressures in the education and health care sectors will not have a very strong effect on consumer prices.