Estonia’s annual inflation rate accelerated to 3.5% in September 2026, the highest level in four months, after having slowed to 1.5% in August, its lowest rate since March 2021. The sharp pickup was mainly driven by transport costs, which increased 14.9% year-on-year, up from 7.2% in August, as gasoline and diesel prices climbed in response to the ongoing military conflict in the Middle East.
Housing costs also rose more quickly, up 7.4% compared with 5.5% in the previous month, largely due to higher prices for electricity, gas, garbage collection, and wood fuel.
These increases were partially offset by declines in several categories. Prices fell for food and non-alcoholic beverages (-1.2% vs -2.6% in August), clothing and footwear (-1.5% vs -4.6%), recreation, sport and culture (-0.8% vs -3.4%), and education services (-8.3% vs +4.7%), reflecting broad-based disinflationary pressures in those segments.
On a monthly basis, consumer prices rose 0.9% in September, the largest increase since January and an acceleration from the 0.4% gain recorded in August.
