Estonia June producer prices fall 1.5% y/y

Estonia June producer prices fall 1.5% y/y

Estonia’s producer prices experienced a significant decline in June 2025, dropping by 1.5% year-on-year. This marked the first annual decline since November 2024 and the steepest drop since May 2024. The primary drivers of this decrease were sharp declines in electricity, gas, steam, and air conditioning prices, which fell by 35.5% compared to May’s -8.1% [1].

On a monthly basis, producer prices in Estonia fell by 1.4% in June, following a 0.2% increase in May. This monthly decline was the largest in three months, indicating a notable slowdown in price growth [1]. The June data reverses the trend observed in May, where prices rose by 0.5% year-on-year, driven by a slowdown in producer inflation across various sectors [1].

The decline in producer prices is attributed to several factors, including the easing of inflation in mining and quarrying, which slowed from 0.4% in May to 1.0% in June. Additionally, prices in the water supply, sewerage, waste management, and remediation activities sector quickened, rising by 11.2% compared to 9.1% in May, while manufacturing prices remained unchanged at 1.1% [1].

The June PPI data underscores a period of subdued inflationary pressure, with price changes in goods and services largely negating each other. This stability provides policymakers with breathing room to consider strategic adjustments without immediate inflationary concerns. Upcoming data releases, particularly on consumer spending and employment, will be crucial in shaping future economic and investment strategies [2].

References:
[1] https://tradingeconomics.com/estonia/producer-prices-change
[2] https://www.ainvest.com/news/june-producer-price-index-stagnates-services-costs-decline-2507/