During the past six months, consumer prices have not grown in Estonia. In October, prices were at the same level as in April this year. However, the average consumer basket is still about 30% more expensive than 2 years ago.
In October, the average price level decreased by 0.4 percentage points compared to the previous month. Prices were most affected by the drop in food prices. In addition to food, motor fuels, household goods, and entertainment also became cheaper.
Food prices have declined by 3.9% in four months. The prices of vegetables, fish and dairy products have decreased, while the prices of meat and sweets are still increasing. The cost of food has decreased in recent months in neighboring countries as well.
According to Swedbank, prices will rise by nearly 10% in 2023. Next year, prices should increase by 4%. Half of the price increase in 2024 comes from the increase in VAT and excise duties. Retail trade companies have already started to adjust their prices ahead of the 2% VAT hike on January 1st.
