Thu, 13 Jan 2011: Inflation worries return to Estonia…



The median estimate in a survey of three analysts was for a rate of 5.5 percent. In the month, prices grew 0.5 percent. Inflation expectations were high ahead of euro entry on Jan. 1, even as Prime Minister Andrus Ansip and central bank Governor Andres Lipstok said price increases can’t be linked to the currency switch. The rise was caused by an “unrelenting” jump in raw material costs and bad weather, placing an “added burden” on economic recovery, the central bank said. “While part of the acceleration in inflation can be explained by the global upward trend in food and energy prices, a significant part of the inflationary pressure is made up by the euro issue,” Violeta Klyviene, senior Baltic economist at Danske Bank, wrote in a note to investors. “The European Central Bank has exp... Read the rest of this entry »

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