According to Eurostat's data published today, the average inflation rate in Estonia, calculated on the basis of the HCPI, reached 1% in November.
Thus, Estonia met the Maastricht inflation criterion.
The meeting of the criterion is based on the average annual price increase of
the past 12 months. The criterion benchmark, which is calculated as the average inflation of the three EU Member States with the lowest inflation plus 1.5 percentage
points, was 1.7% in October. The group of three this time consisted of Belgium, France and Cyprus.
Upward price pressures will be subdued in
near term, irrespective of the planned tax increases. A pick-up in inflation abroad is a risk to inflation in Estonia.
In the central bank's
opinion, Estonia will meet all the Maastricht criteria by the regular assessment in spring. The fiscal deficit criterion is the most topical at the moment. Eesti Pank
is of the opinion that this year's deficit will be around 2.8% of GDP and around 2.7% of GDP in 2010. In the medium term, the budget strategy will have to be
aimed at achieving a surplus in the new growth cycle and at restoring reserves.
Eesti Pank's assessment of the current situation as regards
meeting all the Maastricht criteria is available in the
Report on the Adoption of the Euro
published today.
The Report on the Adoption of the Euro is a regular publication by Eesti Pank. It provides an overview of Meeting the
Maastricht criteria and of other issues related to the adoption of the euro.
