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In September 2025, Estonia’s annual inflation rate eased to 5.2%, down from 6.1% in August, which had been the highest rate in nearly two years. This decline represents the lowest inflation rate since June. The reduction was primarily attributed to a deceleration in the price hikes of food and non-alcoholic beverages, which slowed to 7.7% from 9.2% in August, as well as lower increases in recreation and entertainment costs, which decreased to 6.4% from 8.2%. Education costs also saw a notable decrease, with growth slowing to 1.1% from 2.7%. Conversely, the cost of clothing and footwear saw a more significant decline, falling by 4.5% compared to a 1.8% decrease previously. However, inflationary pressures increased in housing, rising to 2.5% from 1.5%, and in miscellaneous goods and services, which went up to 5% from 4.2%. On a month-to-month basis, consumer prices dropped by 1.1% in September, the first decrease in six months, following a 1% increase in the prior month.