FX.co ★ Estonia Inflation Rate Lowest in Over 5 Years

Estonia’s annual inflation rate eased to 2.2% in July 2026, down slightly from 2.3% in June, marking the weakest price growth since April 2021. The overall slowdown was driven primarily by deeper declines in prices for food and non-alcoholic beverages (-1.6% vs -1.5% in June) and for recreation, sports, and culture (-2.6% vs -0.2%).

Inflation also moderated across several other categories: price increases slowed for alcoholic beverages and tobacco (6.4% vs 8.9%), health (2.7% vs 3.2%), transport (5.4% vs 7.5%), information and communication (0.4% vs 0.8%), education (4.7% vs 5.2%), and miscellaneous goods and services (3.6% vs 4.8%).

By contrast, housing costs continued to accelerate (8.3% vs 7.6%), while prices turned positive for household goods (0.1% vs -0.5%) and for restaurants and accommodation services (1.3% vs -2.0%). Deflation remained but became less pronounced in clothing and footwear (-3.1% vs -6.2%) and in insurance and financial services (-4.1% vs -7.2%).

On a monthly basis, consumer prices rose by 0.5% in July, reversing the 0.5% decline recorded in the previous month.