esaima
12-07-2010, 04:35 PM
Thanks to big markups, wholesalers had one of their best showings ever in the third quarter, says the Bank of Estonia.
Last year the average markup on food, beverages and tobacco was 14 percent but this year it has been two percentage points higher, said Bank of Estonia economic analyst Martin Lindpere.
This has resulted in higher prices being passed forward to consumers. According to Statistics Estonia, food prices rose 2.2 percent in November alone, and the prices have risen 11.6 percent this year, accounting for 52 percent of Estonia's overall inflation.
Although he outlined more than one scenario, Lindpere said inflation in food prices could be temporary. "Based on experiences from 2006-2008, it can't be ruled out that after a very steep increase, prices will become lower," said the analyst, suggesting a correction could take place driven by economic reality.
http://news.err.ee/economy/592d4416-ad2b-4752-ab58-d12fbf0b7dd6
.
Last year the average markup on food, beverages and tobacco was 14 percent but this year it has been two percentage points higher, said Bank of Estonia economic analyst Martin Lindpere.
This has resulted in higher prices being passed forward to consumers. According to Statistics Estonia, food prices rose 2.2 percent in November alone, and the prices have risen 11.6 percent this year, accounting for 52 percent of Estonia's overall inflation.
Although he outlined more than one scenario, Lindpere said inflation in food prices could be temporary. "Based on experiences from 2006-2008, it can't be ruled out that after a very steep increase, prices will become lower," said the analyst, suggesting a correction could take place driven by economic reality.
http://news.err.ee/economy/592d4416-ad2b-4752-ab58-d12fbf0b7dd6
.