By Ott Ummelas
Estonian producer prices rose in July at their fastest annual pace in 9 1/2 years, led by rising food and timber costs, a sign the Baltic country's competitiveness is under pressure.
Producer prices rose an annual 8.7 percent, up from 8.3 percent in June, the Tallinn-based statistics office said on its Web site today. The monthly increase was 0.5 percent.
"The price rise is especially evident in the food sector, probably because of rising prices for milk,'' Maris Lauri, chief economist with Hansabank Markets in Tallinn, said in e-mailed comment. "Somewhat surprisingly also, the prices for building materials and textiles rose, which possibly points to changes in product portfolio and quality.''
Export prices rose 0.9 percent in July from June and 9.1 percent from a year earlier, the office said. Import prices rose 0.4 percent in the month and 2.8 percent from a year ago.
The Baltic country's export industry has struggled this year to adjust to rising wages, up 20 percent in the first quarter. Boras Waefveri AB, a Swedish textile company, said in April it will cut at least 800 jobs, or a quarter of the staff, at its plant in Narva, Estonia, due to low-cost imports from Asia.
Continue reading "Estonia's producer prices rise fastest since 1998 " »
Recent Comments