Consumer price index in July

news release no 92

According to Statistics Estonia, the consumer price index decreased 0.7% in July 2009 compared to July 2008 and increased 0.9% compared to June 2009.

The consumer price index decreased for the third month in succession compared to the same month of the previous year. In July, goods were 2.7% cheaper and services 2.9% more expensive compared to July of the previous year. From goods food products were 0.4% and manufactured goods 4.5% cheaper.

Regulated prices of goods and services have risen 3.8% and non-regulated prices fallen 2.1% compared to July of the previous year.

Compared to July of the previous year, the price decrease of motor fuel (-19.8%), the price decrease of food (-5.1%) and the price increase of alcoholic beverages and tobacco (the price increase together 13%) had the biggest impact on the consumer price index. Milk and dairy products (price decrease 14.4%) gave over a half of the impact of price decrease of food on the index.

The consumer price index of July was also definitely influenced by the rate of value added tax (VAT) that was raised from 18% to 20%. This brought along a large-scale price correction in the majority of commodity groups. Without taking into account the changes in VAT rate, the consumer price index of July, compared to the previous month, was mainly influenced by the sales of clothing and footwear and by the price increase of heat energy.

Change of the consumer price index by commodity groups, July 2009

Commodity group July 2008 –
July 2009, %
June 2009 –
July 2009, %
TOTAL -0.7 0.9
Food and non-alcoholic beverages -4.9 1.3
Alcoholic beverages and tobacco 13.0 1.4
Clothing and footwear 0.2 -3.1
Housing 0.4 2.0
Household goods 3.1 1.3
Health 3.3 0.0
Transport -9.6 0.9
Communications 0.2 1.2
Recreation and culture -0.2 0.5
Education 5.6 0.0
Hotels, cafés and restaurants -0.2 0.5
Miscellaneous goods and services 8.1 1.1

For further information:

Viktoria Trasanov
Head of Price and Wages Statistics Department
Statistics Estonia
Tel: +372 6259 240