Inflation to rise till next spring

Inflation will continue to rise in the coming months, with a slowdown only likely in the second quarter of next year, senior Swedbank analyst Liis Elmik told ETV news show ‘Aktuaalne kaamera’ (AK), in an interview which follows.

Can it be forecast how long current inflation rates will last?

The rise in prices has been mainly due to higher energy prices, and according to our forecast, energy prices should be at a high level until the spring, when the heating season is over. Because of this, we also expect price rises to slow in the second quarter of next year. In the coming months, we may see even higher price increases than we have seen so far.

September saw the highest rate of inflation for the past 13 years, at 6.6 percent. In the most pessimistic forecast, how high could that figure stretch to?

In our baseline scenario, we forecast a rate of inflation of around 7 percent in the coming months, or slightly above that, it, but in the spring of next year the inflation rate will slow down. Over the year as a whole, we forecast a rate of about 4 percent, while next year the price increase should slow down to between three and four percent.

Is the hope that a return to a fall in inflation will be seen from next summer?

Read more: ERR.EE

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