Luminor warns of potential 30% inflation if government decisions remain unchanged. Luminor’s chief economist, Lenno Uusküla, cautioned that consumer price inflation could reach 30% by the end of 2022 if the government does not implement decisive measures. Statistics Estonia data indicates a consumer price index increase of 2.3% in August compared to July and 24.8% compared to August of last year. Goods increased by 18.3% and services by 37.6% year-on-year. Uusküla attributed the price increases primarily to rising energy prices, which constitute a significant portion of electricity price increases. He also noted that some companies have increased prices in anticipation of winter costs, potentially leading to further price escalation. Estonia’s inflation rate is comparable to other EU nations, with energy prices driving the initial increase and base inflation contributing the remainder. Uusküla stated that inflation exceeding 4% in the Eurozone, excluding energy-related factors, is considerably higher than the Eurozone average. He anticipates the European Central Bank will likely raise interest rates sharply on Thursday due to the deteriorating global economic situation, despite the influence of high energy prices on the European Union. Uusküla believes the global economic downturn poses a greater challenge to Estonia than high energy prices. Furthermore, he expressed concern that compensating consumers with energy bill subsidies after payment would exacerbate inflationary pressures. Uusküla estimates the average price level for 2022 will exceed last year’s projections by approximately 20%. Topics: #luminor #decisions #inflation Post navigation Air pollution shortens the life of pregnant women by several months How to live as the world’s oldest person?