Estonia Inflation Rate Lowest in Over 5 Years

The annual inflation rate in Estonia edged down to 2.2% in July 2026 from 2.3% in the previous month. This marked the softest rise since April 2021, driven largely by continued declines in prices for food and non-alcoholic beverages (-1.6% vs -1.5% in June) and recreation, sports and culture (-2.6% vs -0.2%). Price growth also slowed for alcoholic beverages and tobacco (6.4% vs 8.9%), health (2.7% vs 3.2%), transport (5.4% vs 7.5%), information and communication (0.4% vs 0.8%), education (4.7% vs 5.2%), and miscellaneous goods and services (3.6% vs 4.8%). Meanwhile, housing costs continued to increase (8.3% vs 7.6%), while prices rebounded for household goods (0.1% vs -0.5%) and restaurants and accommodation services (1.3% vs -2.0%). Deflation also eased in clothing and footwear (-3.1% vs -6.2%) and insurance and financial services (-4.1% vs -7.2%). On a monthly basis, consumer prices rose 0.5% in July, rebounding from a 0.5% decline in the previous period.

The annual inflation rate in Estonia slowed to 2.3% in June 2026 from a four-month high of 3.7% in the previous month. This marked the softest rise since April 2020, driven largely by declines in prices for food and non-alcoholic beverages (-1.5% vs 0.9% in May), clothing and footwear (-6.2% vs -3.9%), and household goods (-0.5% vs 1.5%). Costs also decreased for recreation, sport and culture (-0.2% vs 4.2%), restaurants and accommodation services (-2% vs 3.2%), and insurance and financial services (-7.2% vs -11.1%). In contrast, inflation remained elevated for housing (7.6% vs 5.4%) and transport (7.5% vs 10.4%), driven by higher electricity, natural gas, gasoline, and diesel prices. Costs also rose for alcoholic beverages and tobacco (8.9% vs 8.1%), partly due to excise duty increases and higher tobacco taxes. On a monthly basis, consumer prices fell by 0.5% in June, marking the first decline in six months and reversing a 0.4% gain in the preceding period.

The annual inflation rate in Estonia rose to 3.7% in May 2026 from 3.4% in the previous month. This marked the highest reading since January, as prices increased faster for housing (5.4% vs 3.7% in April), transport (10.4% vs 9.2%), recreation and culture (4.2% vs 1.5%), information and communication (1.7% vs 1.0%), and restaurants and accommodation services (3.2% vs 3.1%). At the same time, deflation eased in clothing and footwear (-3.9% vs -4.3%) and insurance and financial services (-11.1% vs -11.8%). In contrast, inflation moderated in food and non-alcoholic beverages (0.9% vs 2.6%), alcohol and tobacco (8.1% vs 8.3%), household goods (1.5% vs 1.9%), miscellaneous goods and services (4.1% vs 4.7%), health (2.7% vs 2.8%), and education (5.3% vs 5.4%). On a monthly basis, consumer prices eased to 0.4% in May, following a 0.8% gain in April.