Estonia Inflation Rate at Over 2-Year High of 6.1%

The annual inflation rate in Estonia rose to 6.1% in August 2025, up from 5.4% in the previous month, marking the highest level since July 2023. The increase was primarily driven by a sharp rise in food and non-alcoholic beverage prices, which climbed 9.2%, the highest since September 2023, compared to 9.1% in July. Prices also accelerated in several other categories: alcohol and tobacco (6.2% vs 4.9%), transport (9.7% vs 8.9%), communications (3.1% vs 1.9%), education (2.7% vs 2.5%), health (11.0% vs 10.5%), household goods (2.9% vs 2.8%), and hotels, cafes and restaurants (5.5% vs 5.4%). Housing prices also rebounded, rising 1.5% after a 1.8% decline in July. By contrast, inflation moderated in recreation and culture (8.2% vs 9.0%) and miscellaneous goods and services (4.2% vs 4.7%). On a monthly basis, consumer prices increased by 1.0% in August, accelerating from a 0.6% rise in July—the fastest monthly increase in four months.