Luminor chief economist: June price decline driven by falling oil prices on global markets

Estonian consumer prices fell 0.4 per cent in June compared to May, according to the statistics office. Luminor chief economist Lenno Uusküla explained that the main reason for the decline is the fall in oil prices on the global market.

Estonian consumer prices fell 0.4 per cent in June compared to May, according to the harmonised consumer price index released by the statistics office on Wednesday. When accounting for the typical seasonal price rise in June, the actual decline is even larger, at 0.7 per cent.

Lenno Uusküla, chief economist at Luminor, cited the fall in oil prices on the global market as the main reason for the decline. In year-on-year terms, however, prices are still 2 per cent higher than a year ago.

The June price decline is positive news for consumers, but on an annual basis, price pressure remains. The impact of oil prices is felt primarily through fuel and energy costs, which in turn affect the wider consumer basket.