SEB raised inflation forecast for Estonia by 2 pp
By Sandra Taimre, Äripäev, for
Baltic Business News (Estonia)
June 27, 2008
Due to the faster-than-expected increase in oil prices, SEB increased this year’s inflation forecast for Estonia to 9.8 pct, Ruta Eier, the macro analyst at SEB, said.
The bank forecasted in spring that the inflation will be at 7.8 pct in 2008, aripaev.ee writes.
Ivari Padar, Estonian Minister of Finance, forecasted at the end of 2007 that this year’s inflation will be at 8.5 pct. At the same time, Padar said that the slowdown in economic growth will not cause difficulties in filling the state budget and there will be no supplementary negative budget.
However, Padar had to go back on his words already in April.
Hansabank and Estonian central bank will disclose their new forecasts at the beginning of July.
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