OREANDA-NEWS. September 13, 2012. The annual consumer price growth accelerated from 3.6% in July to 3.8% in August. The price level increased 0.5% compared to July. According to Eurostat’s flash estimate, euro area headline inflation went from 2.4% in July to 2.6% in August, reported the press-centre of Eesti Pank.

The price of motor fuel (denominated in euro) has again soared close to its historical high. Unfavourable weather conditions in several regions of the world are stepping up the cost of food commodities, especially grain and cooking oil.

Services and industrial goods inflation, which is less dependent on external factors, remains relatively low. This is reflected by core inflation, which was 1.7% in August. Wage growth has slowed to 5%, but it is still faster than productivity growth. This shows that inflation caused by domestic factors may gain momentum in the future.

Eesti Pank forecasts this year’s inflation to be 3.9%.