OREANDA-NEWS. October 11, 2011. According to Statistics Estonia, the consumer price index grew 0.5% in September. Price growth declined to 5.2%, year-on-year, and it is expected to slow even more in the coming months, reported the press-centre of Eesti Pank.

Although preliminary estimates indicate that euro-area inflation accelerated to 3% in September, upward price pressures are easing off along with the slowdown in global economic growth. The ECB's regular economic analysts survey showed in August that five-year inflation expectations are firmly set at the level of 2%.

The prices of food, clothing and footwear displayed their usual seasonality: food prices normally go down in autumn, whereas summer discounts on clothing come to an end.

Core inflation in Estonia has been on a gradual rise, reflecting economic recovery and improving labour-market situation. The September core inflation was 1.6%, according to consumer price index data. Core inflation has been increasing due to several services (for example those related to spending leisure time) the price of which is closely tied to wages. The successful tourist season has also contributed to price growth in some sectors. However, the cheapening of leisure goods and communication services has had a decelerating effect.