February inflation was mainly influenced by food

According to Statistics Estonia, the change of the consumer price index in February 2014 was 0.1% compared to January 2014 and 0.6% compared to February of the previous year.

Goods were 1.0% more expensive and services 0.2% cheaper compared to February of the previous year.

Regulated prices of goods and services have decreased by 0.4% and non-regulated prices have risen by 0.9% compared to February of the previous year.

Compared to February 2013, the consumer price index was mainly influenced by the 2.4% price increase of food, whereas the 5.5% more expensive dairy products accounted for 40% and the 8.1% more expensive vegetables accounted for nearly a third of the impact of food on the index. 90% of the increase in the index caused by food was offset by the price decrease of electricity, heat energy and fuel – heat energy was 4.7% cheaper and the electricity that arrived at homes was 4.1% cheaper than in February 2013. Alcoholic beverages and tobacco also had a bigger impact on the index, as their prices increased by 5.3% and 7.6% respectively, compared to February 2013. In February 2014, motor fuel was 4.6% cheaper than in the same month last year. Compared to February 2013, of food products, the prices of fresh vegetables and fish have increased the most (14% and 12%, respectively) and the prices of coffee and sugar have decreased the most (16% and 13%, respectively).

In February compared to January, the consumer price index was mainly influenced by the 1.8% price decrease of electricity, heat energy and fuel, by the 1.4% price increase of alcoholic beverages and tobacco, and by the end of the sales of clothing and footwear. Cigarettes with the new excise stamps arrived in most stores. Compared to January, the prices of Chinese cabbage increased the most (47%) and the prices of oranges decreased the most (17%).

Change of the consumer price index by commodity groups, February 2014
Commodity group February 2013 – February 2014 % January 2014 – February 2014 %
TOTAL 0.6 0.1
Food and non-alcoholic beverages 1.7 0.4
Alcoholic beverages and tobacco 5.9 1.4
Clothing and footwear 2.0 1.8
Housing –1.1 –0.9
Household goods 0.7 0.4
Health 5.8 0.3
Transport –2.9 –0.2
Communications –7.2 –0.2
Recreation and culture 3.1 0.2
Education –14.9 0.2
Hotels. cafés and restaurants 5.4 0.5
Miscellaneous goods and services 2.7 –0.6

 

Source: Statistics Estonia

January retail sales were 279 euros per inhabitant

According to Statistics Estonia, in January 2014 compared to January 2013, the retail sales of goods of retail trade enterprises increased 7% at constant prices.

In the last three months of 2013, the retail sales have increased 4–6% compared to the same month of the previous year. This January, the retail sales growth accelerated to some extent.

In January 2014, the retail sales of goods of retail trade enterprises were 366.1 million euros, which was 279 euros per inhabitant. The retail sales in stores selling manufactured goods increased 12% compared to January 2013. The sales increased in all economic activities. The retail sales via mail order or the Internet increased the most (32% growth). In January, the retail sales growth in stores selling textiles, clothing and footwear accelerated remarkably with the retail sales increasing 23% over the year. The growth in retail sales of these stores was influenced by the lower reference base of the previous year and by the discount sales campaigns that took place in January. A higher-than-average increase occurred also in other specialized stores, such as stores selling computers and their accessories, photography supplies, books, sports equipment, games and toys, etc. (14% growth).

The retail sales in grocery stores increased 5% compared to January of the previous year. In comparison with the previous months, the retail sales growth in these stores accelerated slightly. The growth acceleration in the retail sales of grocery stores was influenced by the lower reference base of the previous year and by the deceleration in the price increase of food products. While in January of the previous year, the annual price increase of food products was 5.5%, then in this January it was 2.5%.

The retail sales of automotive fuel increased 4% at constant prices compared to January 2013.

Compared to the previous month, the retail sales in retail trade enterprises decreased almost by a fifth (18%) at constant prices in January. This is a usual fall following the Christmas time and end-of-year sales. According to the seasonally and working-day adjusted data, the retail sales increased 3% compared to the previous month.

In January, the turnover of retail trade enterprises was 440.8 million euros, out of which the retail sales of goods accounted for 83%. Compared to January 2013, the turnover increased by 9% at current prices. Compared to the previous month, this indicator decreased 14%.

Retail sales volume index of retail trade enterprises and its trend, January 2004 – January 2014 (2010 = 100)

Retail sales volume index of retail trade enterprises and its trend

 

Source: Statistics Estonia

Estonian retailers are hopeful about the future

Half of retailers expect revenues to grow and the barometer of service and industrial companies shows positive signs.

The only exception is construction, writes Äripäev.

Read more from BBN

The Estonian Economy – Retail trade on a steady growth path

• Strong growth continued in the retail trade sector in 2013
• Tighter competition will affect retail enterprises’ profitability
• Outlook is positive as incomes are expected to rise further

Strong growth continued in the retail trade sector in 2013
Retail trade has been growing steadily in Estonia since the end of 2010. Domestic trade was one of the main contributors to GDP growth in 2013. Growing wages, pensions, and consumer confidence, as well as slowing inflation, benefitted retail trade sales. The number of foreign tourists visiting Estonia hit a record high for the fourth year in a row in 2013, but tourists’ share in total retail trade remains low.

Tightening competition will affect profitability
Retail space is growing in an already tight retail market. Mall space per inhabitant in Tallinn is already one of the highest in Europe. In 2013, stronger competition marginally lifted the selling time of goods inventories and supressed trade margins. However, retail space remains almost fully occupied at least in Tallinn, and the profitability of retail enterprises remained satisfactory last year.

Outlook is positive for 2014 as incomes are expected to rise further
The outlook of the retail trade sector is positive for 2014 as wages and pensions continue increasing and inflation will decelerate. Still, we expect only modest growth in 2014 as the 2013 level was already high. The retail trade sector is optimistic about the future and expects sales and prices to rise. Also, consumers have become more upbeat about their own financial situation, as well as about the country’s general economic environment.

Source: Swedbank

Developer scraps 100 MEUR shopping mall project in Tallinn

Real estate developer E.L.L. Kinnisvara which belongs to Merko, the largest construction company in the Baltic states, unexpectedly announced on Friday that it will not go ahead with developing the major shopping center project known as Panorama City to be built near Tallinn Song Festival Grounds, reports Äripäev.

Read more from BBN

Retail sales grew in December

According to Statistics Estonia, in December 2013 compared to December 2012, the retail sales of goods of retail trade enterprises increased 5% at constant prices.

In December 2013, the retail sales of goods of retail trade enterprises were 448.3 million euros, which was almost 340 euros per inhabitant. The retail sales in stores selling manufactured goods increased 12% compared to December 2012. The sales increased in most economic activities. Only the retail sales in non-specialized stores selling predominantly industrial goods (i.e. department stores) were 2% smaller than in December of the previous year. The retail sales of second-hand goods in stores and non-store retail sale (stalls, markets, direct sale) increased the most – 81% compared to the same period of the previous year. Compared with previous months, the retail sales growth of this economic activity accelerated, mainly due to the very low reference base of December 2012. The sales increase in second-hand goods stores does not significantly influence the retail sales of goods of retail trade enterprises, because the share of this economic activity is very small – 1.5% in December 2013. A higher than average increase occurred in retail sales via mail order or the Internet (26% growth) and in stores selling household goods and appliances, hardware and building materials (21% growth). In December, the retail sales increased also in other specialized stores, such as stores selling computers and their accessories, photography supplies, books, sports equipment, games and toys, etc. (10% growth), in stores selling textiles, clothing and footwear (8% growth) and in stores selling pharmaceutical goods and cosmetics (3% growth).

The retail sales in grocery stores have been rather stable during the last months. The retail sales in grocery stores increased 3% in December compared to the same month of 2012.

The retail sales of automotive fuel decreased 10% at constant prices compared to December 2012; the decline was faster than in the previous month. The faster decline in the retail sales of automotive fuel was partly influenced by the high reference base of December 2012 and deceleration in the price decrease of automotive fuel. In November 2013 the annual price decrease of automotive fuel was 4.7%, whereas in December it was 1.8%.

In December compared to November 2013, the retail sales in retail trade enterprises increased almost by a fifth at constant prices. This is a usual rise in December, when Christmas and New Year’s sales take place.

In December, the turnover of retail trade enterprises was 518.2 million euros, out of which the retail sales of goods accounted for 87%. Compared to December 2012, the turnover increased by 3% at current prices. Compared to the previous month, this indicator increased 15%.

According to preliminary data, the retail sales of retail trade enterprises were 4.6 billion euros in 2013. Compared to 2012 the retail sales increased 5% at constant prices.

Source: Statistics Estonia

Eesti Post will buy 25 mln euros worth of vans

Estonian state-owned postal company Eesti Post announced that increased business volumes and fast growth in the Baltic States led it to hold a 2.5 million euro procurement in Estonia, Latvia and Lithuania to buy vans, Äripäev reports.

The company intends to buy 185 vehicles over two years, 143 of which for Estonia, 20 for Latvia and 22 for Lithuania.

Read more from BBN

Stable growth in retail sales

According to Statistics Estonia, in November 2013 compared to November 2012, the retail sales of goods of retail trade enterprises increased 7% at constant prices.

In November 2013, the retail sales of goods of retail trade enterprises were 379.6 million euros, which was 295 euros per inhabitant. The retail sales in stores selling manufactured goods increased 14% compared to November 2012. The sales increased in most economic activities. Only the retail sales in non-specialized stores selling predominantly industrial goods (e.g. department stores) stayed at the same level compared to the previous year. In November, the retail sales of second-hand goods in stores and non-store retail sale (stalls, markets, direct sale) increased the most, where the retail sales increased 65% during the year. The sales increase in these stores does not significantly influence the retail sales of goods of retail trade enterprises, because the share of this economic activity is very small – 1.9% in November 2013. A higher than average increase occurred in stores selling household goods and appliances, hardware and building materials (26% growth) and in retail sales via mail order or the Internet (24% growth). In November, the retail sales growth rate in stores selling textiles, clothing and footwear accelerated remarkably. In October the retail sales of these stores took an upturn after four months of decline and increased 4% compared to the same period of the previous year, while in November the growth was 11%. The retail sales increased also in other specialized stores, such as stores selling computers and their accessories, photography supplies, books, sports equipment, games and toys, etc. (9% growth) and in stores selling pharmaceutical goods and cosmetics (3% growth).

The retail sales in grocery stores were mostly stable in October and November. The retail sales of these stores increased 4% in November compared to the same month of 2012.

The retail sales of automotive fuel stayed at the same level at constant prices compared to November 2012.

In November compared to October 2013, the retail sales in retail trade enterprises decreased 4% at constant prices. According to the seasonally and working-day adjusted data, the retail sales increased 2% compared to the previous month. During the eleven months (January–November) of 2013, the retail sales in retail trade enterprises increased 5% at constant prices compared to the corresponding period of 2012.

In November the turnover of retail trade enterprises was 449 million euros, out of which the retail sales of goods accounted for about 85%. Compared to November 2012, the turnover increased by 5% at current prices. Compared to the previous month, this indicator decreased 5%.

Retail sales volume index of retail trade enterprises and its trend, January 2003 – November 2013 (2010 = 100)

Diagram: Retail sales volume index of retail trade enterprises and its trend

 

Source: Statistics Estonia

Inflation was caused by housing expenditures

According to Statistics Estonia, the change of the consumer price index in November 2013 was –0.4% compared to October 2013 and 1.5% compared to November of the previous year. Both the monthly and annual change were influenced the most by housing expenditures.

Goods were 0.9% and services 2.5% more expensive compared to November of the previous year.

Regulated prices of goods and services have decreased by 0.9% and non-regulated prices have risen by 2.3% compared to November of the previous year.

Compared to November 2012, the consumer price index was mainly influenced by housing expenditures, whereas more than 80% of the increase in housing expenditures was caused by the electricity that arrived at homes which was 26.8% more expensive than in November 2012. Over a half of the increase in the index caused by electricity was cancelled out by the decrease in prices in transport due to the free city transport introduced in the capital this year and the decrease in motor fuel prices. In November 2013, motor fuel was 4.7% cheaper than in the same month in 2012. Compared to November 2012, of food products, the prices of fish have increased the most (15%) and the prices of eggs and coffee have decreased the most (15%).

In November compared to October, the consumer price index was mainly influenced by housing expenditures which accounted for two fifths of the total decrease, whereas 80% of this was caused by the 2.4% decrease in the price of electricity that arrived at homes. The plane tickets bought for November were 17.4% cheaper than in October and accounted for about a third of the total decrease of the index. The 8.4% price decrease of fruit also had a bigger impact on the index. Compared to October, of food products, the prices of mandarins decreased the most (26%) and the prices of fresh cucumber increased the most (18%).

Read more from Statistics Estonia

Growth in retail sales accelerated to some extent

According to Statistics Estonia, in October 2013 compared to October of the previous year, the retail sales of goods of retail trade enterprises increased 7% at constant prices. In September the retail sales increased 4% compared to the same month of the previous year, while in October the retail sales growth accelerated to some extent.

In October 2013, the retail sales of goods of retail trade enterprises were 395.1 million euros, which was 307 euros per inhabitant. The retail sales growth rate in stores selling manufactured goods accelerated compared to the previous months. While in August and September, the retail sales of those stores increased 9% compared to the same period of the previous year, then in October the growth was 13%. The sales increased in most economic activities. Only in non-specialised stores selling predominantly industrial goods (e.g. department stores) were the retail sales 3% smaller than in October of the previous year. The retail sales of stores selling second-hand goods and non-store retail sale (stalls, markets, direct sale) increased the most, by more than half (67%) compared to October of the previous year. The sales increase in the stores of this economic activity does not significantly influence the retail sales of goods, because the share of this economic activity is very small – 1.9% in October 2013. In October, a higher than average increase occurred in retail sales via mail order or the Internet (a growth of 28%), in stores selling household goods and appliances, hardware and building materials (a growth of 22%) and in other specialised stores, such as stores selling computers and their accessories, photography supplies, books, sports equipment, games and toys (a growth of 12%).

The retail sales in grocery stores increased 4% compared to October of the previous year, compared with the previous months the retail sales growth rate accelerated to some extent. The growth in the retail sales of these stores was influenced by the discount sales campaigns that took place in October, also by the lower reference base of the previous year and by the deceleration in the price increase of food products. While in September, the annual price increase of food products was 2.7%, then in October it was 1.7%.

The retail sales of automotive fuel increased 2% at constant prices compared to October 2012.

Compared to the previous month, in October the retail sales in retail trade enterprises increased 6% at constant prices. According to the seasonally and working-day adjusted data, the retail sales increased 1%. During the ten months (January–October) of 2013, the retail sales in retail trade enterprises increased 5% at constant prices compared to the corresponding period of the previous year.

In October, the turnover of retail trade enterprises was 475.3 million euros, out of which the retail sales of goods accounted for 83%. Compared to October 2012, the turnover increased by 5% at current prices. Compared to the previous month, this indicator increased 6%.

Retail sales volume index of retail trade enterprises and its trend, January 2003 – October 2013 (2010 = 100)

Diagram: Retail sales volume index of retail trade enterprises and its trend

 

Source: Statistics Estonia

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