Lindpere: Inflation in Estonia was Driven by Excise Duty on Tobacco in September

Source from:  Juhan Tere, BC, Tallinn, 08.10.2008.Print version 10/09/2008

Estonian central bank's economist Martin Lindpere believes that September price growth was mainly influenced by more expensive tobacco products, the price of which increased 22% due to higher excise duty, the Baltic Business News Channel informed. Martin Lindpere. Tobacco products account for nearly two thirds of the monthly price growth, the expert noted. Lately the monthly price growth has been clearly lower than at the end of the last year and beginning of this year. "Price recession is continuously weakened by domestic economic factors, which have been supported by slackening wage raise," Lindpere said. Price growth for services has decreased from 11% at the beginning of the year to 8.7%, rent decreased 2.9% in September. Price of food products went down 0.5% in September. "In October inflation will be temporarily faster due to rising prices of natural gas and heating energy. Over the last several weeks the energy prices in the world have fallen strongly, which should affect Estonian energy prices in some time," Lindpere said. Enditem