Prices of food and non-alcoholic drinks rose an annual 16.7 percent, compared with 17.1 percent in February, the statistics office said. Housing costs rose 14.9 percent, down from 15.2 percent in February. But prices of services are still increasing strongly, transport is rising at a 13.7% annual rate (2.1% m-o-m) and hotels and restaurants at a 15.5% one (1.1% m-o-m). So core inflation is still very high, and in the background wages continue to rise at a very steep pace.
Update May 2 2008
This report in the press today about possible gas price rises in estonia caught my eye. At this point it is hard to say whether or not Eesti gas will get the full price rise they are seeking, but nonetheless the increase is still likelyy to be substantial, which really must raise a lot of concern about the level consumer price inflation will be running at during the first half of 2009.
AS Eesti Gaas, an Estonian gas company, applied to raise prices for consumers 41 percent between September and October, Eesti Paeevaleht reported, citing management board member Raul Kotov.
Gas prices would rise 35 percent for an average household if the application is approved by the Estonian Competition Board, the newspaper quoted Kotov as saying. Eesti Gaas, owned by Russia's OAO Gazprom, E.ON Ruhrgas AG of Germany, and Finland's Fortum OY, has 120,000 household customers, the newspaper said.