(Bloomberg) Estonia’s economy struggled to break out of the European Union’s most sustained contraction as a drop in trade with the Nordic region and an energy shock spurred by Russia’s war in Ukraine take a toll. Most Read from BloombergSaudi Arabia Offers Iran Investment to Blunt Gaza WarCharlie Munger, Who Helped Buffett Build Berkshire, Dies at 99Henry Kissinger, Secretary of State in 1970s Crises, Dies at 100Bill Ackman Bets Fed Will Cut Interest Rates as Soon as First QuarterBond Yields
The decline in inflation in Estonia has largely come from prices falling for energy and a range of commodities, but it takes time for the effect of these lower prices to pass through into the end prices of other consumer goods, according to economist at the Bank of Estonia Rasmus Kattai.
RIGA: Already enduring the eurozone’s steepest inflation, the Baltic region is now finding it’s the most exposed part of the bloc to rising interest rates.
Estonia's continued high inflation, driven by high energy prices arising from the Ukraine conflict and the highest rate in the European Union, will continue through to spring, experts say.