Latvia: Consumer prices fall in November
December 9, 2013
In November, consumer prices decreased 0.5% over the previous month (September: +0.4% month-on-month). According to the statistical office, the drop reflects lower prices for food, alcoholic beverages and tobacco, as well as for clothing and footwear.
Consumer prices fell 0.4% in November over the same month last year, which came in below the unchanged figure registered in October. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) rose from minus 0.4% in September to zero in October, the latest month for which data are available. Annual average HICP inflation dropped to 0.3% in October (September: +0.5% yoy).
The Central Bank expects HICP inflation to average 0.7% in 2013. FocusEconomics Consensus Forecast panelists expect HICP inflation to average 0.5% this year, which is down 0.4 percentage points from last month's projection. For 2014, the panel expects HICP inflation to average 2.5%, which is unchanged from last month's estimate.
Author: Ricardo Aceves, Senior Economist