In January 2026, Estonia experienced a year-on-year rise in the Consumer Price Index (CPI) of 3.7%, according to newly revised data released by the statistics office. This increase marks a significant jump, with the CPI having risen by 1% compared to the previous month. Lauri Veski, head of the consumer price statistics at the statistics office, noted that the last time the annual CPI growth was at a similar level was in January 2025, when it recorded a 3.9% increase.

The primary contributors to the CPI's rise in January 2026 were substantial increases in electricity, food, and alcohol prices. Specifically, the average spot price of electricity soared to extraordinarily high levels in January, leading to a remarkable 22.2% increase in the electricity price index compared to December. Additionally, food prices saw an overall rise of 2.3% due to significant increases in vegetable prices (11.1%) and meat product prices (2%). Alcohol prices also saw a notable hike of 5.3%, further amplifying the pressures on consumers during this period.

This marked increase in the Consumer Price Index reflects broader economic challenges facing households in Estonia, with rising costs for essential goods impacting consumer purchasing power. With inflation rates fluctuating, the data signifies the need for monitoring price trends closely, as they play a critical role in economic policy and the overall financial well-being of the population. The implications of these price increases could lead to adjustments in consumer behavior, potentially affecting the economy at large depending on how sustained these trends become over the ensuing months.