In December 2025, Estonia's annual inflation rate decreased to 4.1% from 4.9% in November, marking its lowest level since January. This decline was attributed to a slowdown in price increases for several categories: food and non-alcoholic beverages rose by 5.6%, down from 6.5% in November; alcoholic beverages and tobacco increased by 5.3%, compared to 5.8%; housing utilities saw a modest rise of 0.7%, down from 3.3%; and transportation costs grew by 7.6%, a decline from 10.6%. Conversely, costs remained unchanged for health services at 11.1% and for hotels, cafes, and restaurants at 5.3%. Prices for clothing and footwear fell further, dropping by 6.6%, compared to a 5.7% decrease previously. However, there were upward trends in other areas: household goods increased by 2.7%, up from 1.9%; communication costs rose to 4.4% from 2.4%; education prices crept up to 1.7% from 1.6%; and miscellaneous goods and services saw a rise to 5%, from 4.6%. On a month-to-month basis, consumer prices dropped by 0.6% in December, following a 0.2% decrease in the prior month. Throughout the year, Estonia experienced an average inflation increase of 4.8% compared to the previous year.