Latvia: Consumer prices fall further in February on an annual basis
March 8, 2016
In February, consumer prices rose 0.1% over the previous month, which rebounded from the 0.6% decrease observed in the previous month. According to the statistical office, the monthly increase was mainly the result of higher prices for food as well as for alcohol and tobacco.
Consumer prices fell 0.5% over the same month last year in February, which followed a 0.3% decrease in January. February’s print marked a second consecutive drop and the lowest level since September 2015. Annual average inflation slowed from 0.2% in January to 0.1% in February.
Moreover, harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—also increased 0.1% month-on-month in February, which contrasted the 0.7% drop observed in January. HICP consumer prices fell 0.6% annually in February, which came in below a 0.3% decrease in January. Annual average HICP inflation averaged 0.2% in February, which was in line with January’s reading.
Author: Ricardo Aceves, Senior Economist