Latvia: Annual decrease in consumer prices drops further in March
April 8, 2016
In March, consumer prices jumped 0.7% over the previous month, which followed the 0.1% increase observed in the previous month. According to the statistical office, the monthly jump resulted from higher prices for clothing and footwear, recreation and culture as well as for transportation services.
Despite the monthly increase, consumer prices fell 0.6% over the same month last year in March, which followed a 0.5% decrease in February. March’s print marked a third consecutive drop and the lowest level since September 2015. Annual average inflation stood at February’s 0.1% in March.
Moreover, harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—increased 0.8% month-on-month in March, which came in well above the 0.1% rise observed in February. HICP consumer prices fell 0.6% annually in March, which followed a similar decrease in February. Annual average HICP inflation inched down from February’s 0.2% to 0.1% in March.
Author: Ricardo Aceves, Senior Economist