The Consumer Price Index (CPI) rose by 9.2 percent for 2023 as a whole, compared with the preceeding year, state agency Statistics Estonia reports.

Statistics Estonia’s Viktoria Trasanov reports that food and non-alcoholic beverage price changes significantly impacted the Central Bank’s CPI in 2023, with sugar, cocoa, olive oil, and sauces experiencing the largest increases. Gasoline and diesel fuel prices were also cheaper.

Between November and December 2023, the Central Bank’s CPI fell by 0.1%, while December’s figure was 4.0 percent higher. Prices for goods and services increased by 2.5 percent and 6.7%, respectively. Natural gas prices rose by 24% and motor fuel prices fell by 4.1%. Housing, food, and non-alcoholic beverages were the most affected, with olive oil being the largest increase. Confectionery and gasoline prices also increased.

Economist: Stores started making up prices ahead of VAT hike coming into being

Luminor Bank’s chief economist, Lenno Uusküla, predicts a slight price increase in early 2024 due to anticipated VAT hike and reduced free county transport, while the ongoing recession has pushed prices downward.

Consumer confidence in wide-ranging plans remains weak due to uncertain labor market conditions and environmental changes. Housing-related expenses have risen by 2.1%, while goods and services prices have increased by 1.7%. Food prices have increased by 0.5%, transport costs have fallen by 3.7%.