Estonian inflation eases to 4.2pc in November

TALLINN: Euro zone member Estonia's annual inflation rate eased slightly to 4.2 percent in November from the previous month but pressure from higher heating costs kept prices higher than analysts had expected, data showed on Wednesday.

The consumer price index rose 0.1 percent in November on a month-on-month basis, compared with a 0.1 percent fall in October and more than the 0.1 percent fall expected by five analysts polled by Reuters.

The annual 4.2 percent rise in prices in November compares with 4.4 percent in October, but is more than median of analysts' expectations with a 4.0 percent increase.

The highest the annual inflation rate reached this year was in February, when it rose to 5.7 percent.

"Compared to November of the previous year, the consumer price index was mainly influenced by housing expenditures, which gave over a third of the total increase. The main reason for this was 8.6 percent more expensive electricity, heat energy and heating compared to the period a year ago," the office said in a statement.

The office added that in November alone, the index was mainly influenced by the 0.7 percent increase in the price of food, of which over a half was due to the seasonal increase in the prices of fresh vegetables.

The Estonian finance ministry said in September it expects an inflation rate of 4.9 percent in 2011, which could slow to 2.8 percent in 2012.

Copyright Reuters, 2011