Thursday, 10 January 2008
Estonia : Say "Cheese" To Inflation
"Food prices in the Estonian capital are rapidly overtaking those north of the Gulf of Finland, with cheese among the 14 out of 44 items included in an EU study costing more in Tallinn than in Helsinki."
"According to the study, made public Thursday, a number of other dairy products as well as eggs, beef fillet and chocolate cost more in Tallinn than in Helsinki."
"Over the past six months, the price of food has risen by more than 20 per cent in Tallinn, compared with a rate of increase of six per cent in Helsinki."
It's all relative...still this way of communicating information is misleading. A Six percent food price increase is big! especially if it's a trend. The situation in Estonia is desperate. They should fire the finance minister, one who was criticizing the EU which was recommanding Estonia to be vigilant about inflation about 1,5 year ago. He ignore the calls and the estonia people are now paying the price.
Finland has ignored calls for housing and land reforms from the OECD, the country have already paid the price last autumn by very high wage agreement triggering an inflation not seen since 2001.