The German-French cultural channel Arte aired a five-minute segment about how the purchasing power of Estonians has fallen dramatically after the corona crisis and Russia’s full-scale invasion of Ukraine.
“Estonia struggled with extremely high inflation last year more than perhaps any other European country. The consequences of this can still be felt today, as prices remained significantly higher than before the corona pandemic and Russia’s war against Ukraine. However, the salaries of the majority of people have not risen at the same pace as prices during this period,” says the introductory text of the show.
As of November this year, prices in the entire eurozone rose by 2.4 percent. At the same time, the prices of food, alcohol and tobacco rose by 7 percent. However, energy prices fell by 11.5 percent. However, the inflation indicator was particularly high in the Baltic States. For example, life in Estonia became more expensive by 21 percent as of November last year, becoming cheaper by 4 percent by November this year.
In the accompanying section, which begins with aerial shots of Tõnismäe, journalist Tom Feldmann states that there is no outward sign of the powerful inflation and economic crisis that the entire Baltic region had to deal with last year in Tallinn.
“The increase in the cost of living peaked with an increase of more than 25 percent, which has decreased by a good 4 percent today. However, there is no reason to be happy yet, because in addition to falling fuel and electricity prices, food prices continue to remain high,” Feldmann says. stand-up‘is.
At the Christmas market in Tallinn’s town hall square, Feldmann admits that six euros for soup and four euros for coffee or tea is a point of reflection for many Estonians. The journalist talks to Helena Aston, a single mother who came to the old town with two of her three children for a walk, who, according to her, has to think through all expenses in advance. Aston cited as an example that although the children wanted to go skating with him to Harjumäe, he did not think it was possible because, unlike the children, he would have to pay the full price. Although working as a senior specialist in transmission services for a software company, he has acquired an additional job, is selling his personal car and has to think about where he will go with the children in order to make it financially reasonable.
“People are waiting for what will happen. Little is bought,” says Mare Kelpman, the owner of the eponymous textile studio, about the sharp inflation shaking the retail trade. “For us, absolutely all prices have increased – from Italian yarns to accounting services. Since the beginning of the war, we have not risked raising prices to any extent, but now that the VAT is going up, we actually have to raise prices.”
The host notes that even though the prices are rising, Estonians do not blame the euro or the euro union, but rather see the reasons in the Kremlin.
“Unfortunately, we have not been able to build up our electricity production capacity well enough in recent years. We are highly dependent on the energy production and prices of our neighbors, and that is why we are also going through difficult times,” admits Rasmus Kattai, Head of the Economic Policy and Forecast Sub-Department of Eesti Pank, in an English-language interview.
According to Feldmann, however, Estonians are used to economic turbulence, because after the collapse of the Soviet Union, it took them ten years to rebuild the country, and the economic crisis of 2008 also paid a toll.
“It must be mentioned that, despite tamed inflation, the price level is currently 30 percent higher than three years ago,” adds Kattai.
“”Let’s stay calm and carry on!” – with this attitude, Estonians have almost stoically suffered inflation and the related decline in purchasing power,” Feldmann concludes optimistically, before adding that, apart from the right-wing populist EKRE, no parliamentary party has tried to use the crisis to their advantage.
The program can be seen until next Christmas at www.arte.tv/de/videos/118317-000-A/estland-enormer-verlust-der-kaufkraft
BNS
