OREANDA-NEWS.  July 09, 2012. According to Statistics Estonia, in June the consumer price index rose by 0.1% from May and by 3.9% from a year ago. Euro area inflation picked up 2.4%, based on Eurostat preliminary estimates, reported the press-centre of Bank of Estonia. 

Consumer price growth in June was shaped by seasonal factors, in particular colder than average spring. Compared to May, the prices of fresh fruits and vegetables went up by 14.1% and 9.4% respectively. Motor fuels, however, saw a price drop due to the falling oil price.

Core inflation remained at 2% in June, and it was mainly driven by a rise in the prices of services, including transport and rental prices. Strong demand for tourism services and wage growth in the services sector boosted accommodation prices by 6.2% month-on-month and by 18.5% year-on-year.

Based on Eurostat’s recent price comparison in the European Union, Estonia’s average price level constitutes 79% of the EU average. In Estonia, the prices of footwear and clothing are above the EU average at 112% and 101% respectively, while the prices of home electronics are at the same level (100%). Services, on the other hand, are considerably cheaper in Estonia (60.2% of the EU average), as their prices are directly related to the country’s income level.

In the coming months, the inflation rate will be shaped by the high reference base, which means that annual inflation should slow down. Eesti Pank expects the annual inflation for 2012 to be 3.9%.