Estonia's annual inflation rate was steady at 1.8 percent in December 2019, unchanged from the prior month. Main upward pressure came from food & non-alcoholic beverages (2.9 percent, the same as in the prior month), mainly due to meat products (6.2 percent) and fresh fruit (8.9 percent); clothing (0.3 percent vs 1.8 percent), household goods (0.9 percent vs 1.7 percent), recreation and culture (5.1 percent vs 7.2 percent), and miscellaneous goods & services (1.4 percent vs 3.1 percent). Also, transport prices rose faster (4.6 percent vs 0.8 percent), mainly due to petrol (10.6 percent) and diesel fuel (6 percent). In contrast, cost of housing fell (-2.4 percent vs -0.3 percent). On a monthly basis, consumer prices dropped by 0.3 percent in December, the fourth straight month of decrease and the biggest decline in the current sequence of month, following a 0.2 percent fall in November. Considering 2019 full year, the averaged inflation eased to 2.3 percent from 3.4 percent in 2018. Inflation Rate in Estonia averaged 3.33 percent from 1999 until 2019, reaching an all time high of 11.44 percent in June of 2008 and a record low of -2.17 percent in October of 2009.
Inflation Rate in Estonia is expected to be 2.30 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Estonia to stand at 2.00 in 12 months time. In the long-term, the Estonia Inflation Rate is projected to trend around 2.10 percent in 2020, according to our econometric models.