Rising energy prices drove inflation higher across Europe in September, with Estonia and the eurozone recording notable increases, according to official data and economic analyses.
In Estonia, consumer prices rose 3.5 percent year-on-year in September and 0.9 percent from August, Statistics Estonia reported. Swedbank senior economist Liis Elmik said the acceleration was expected and primarily driven by energy costs, with motor fuels alone accounting for nearly half of the monthly increase. Gasoline and diesel prices surged about 40 percent over the year, while natural gas saw the steepest annual rise among housing-related energy costs, up 38 percent, according to Bank of Estonia economist Sulev Pert .
Eurostat’s preliminary data showed eurozone inflation at 3.8 percent in September, up from 3.2 percent in August, with energy prices nearly 20 percent higher than a year earlier. The Harmonised Index of Consumer Prices in Estonia reached 3 percent, below the eurozone average but still elevated compared to pre-conflict levels .
Pert noted that excluding energy, price growth remained moderate, with food prices even declining in some categories. However, rising producer costs for foodstuffs could delay or reverse this trend. The Bank of Estonia economist also highlighted that electricity prices for consumers rose due to new balancing capacity and security of supply fees introduced this year .
