Jan. 6 (Bloomberg) -- Estonian consumer prices grew at the slowest pace in 16 months in December as food costs declined.
Inflation eased to 3.7 percent from a year earlier, the smallest increase since August 2010, compared with a 4.2 percent rise in November, the Tallinn-based statistics office said today on its website. The median forecast in a Bloomberg survey of four analysts was 3.8 percent. Prices rose 0.1 percent from the previous month.
Estonia’s inflation is declining due to easing global food and fuel prices, which affect the newest euro-area member more than most European countries because of its relatively lower incomes and northern location, according to the central bank and the Finance Ministry.
The ministry said last month that it expects inflation to accelerate “temporarily” in January after the national gas company AS Eesti Gaas and power utility AS Eesti Energia both announced plans to raise rates from the start of the year.
--Editors: Alan Crosby, James Gomez
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