Inflation Poses Dilemma

Inflation remains persistently elevated in Estonia, as buoyant economic growth as well as lingering cost-push factors conspire to goad consumer prices higher. We expect headline inflation to moderate through the final quarter of 2011. However, inflation remains uncomfortably high, and with Estonia unlikely to see monetary tightening as a member of the eurozone currency bloc, this could pose greater economic problems further down the line.

To read the full article, please choose one of the following options: