Estonia Inflation Rate

The annual inflation rate in Estonia accelerated to 3.5% in September 2026, marking the highest reading in four months and rising sharply from 1.5% in August, which was the lowest since March 2021. The increase was largely driven by higher transport-related prices, which rose 14.9% year-on-year from 7.2% in August, as gasoline and diesel costs surged due to the ongoing military conflict in the Middle East. Inflation also went up for housing (7.4% vs 5.5%), mainly due to higher electricity, gas, garbage collection and wood fuel prices. In contrast, costs declined for food and non-alcoholic beverages (-1.2% vs -2.6%), clothing and footwear (-1.5% vs -4.6%), recreation, sport and culture (-0.8% vs -3.4%), and education services (-8.3% vs 4.7%). On a monthly basis, consumer prices rose by 0.9% in September, the strongest gain since January and accelerating from a 0.4% increase in the preceding period.

The annual inflation rate in Estonia eased to 1.5% in August 2026, the lowest reading since March 2021, and sharply down from 2.2% in July. It also marked the first month that inflation was below the ECB’s medium-term inflation target of 2% in over five years. The main downward pressure came from a further decline in the cost of food and non-alcoholic beverages (-2.6% vs -1.6% in July), driven by lower prices of fruits and nuts, milk, dairy products, and eggs. Prices also went down for clothing and footwear (-4.6% vs -3.1%), household goods (-0.8% vs 0.1%), and recreation and culture (-3.4% vs -2.6%). In addition, housing inflation moderated to 5.5% from 8.3%. Meanwhile, costs accelerated for transport (7.2% vs 5.4%), driven by an increase in the prices of gasoline (+7.9%) and diesel fuel (+27.9%). Inflation also went up for health (3.1% vs 2.7%) and restaurants and hotels (2% vs 1.3%). On a monthly basis, consumer prices grew 0.4%, following a 0.5% rise in the previous period.

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.