Latvia Inflation June 2016

Latvia

Latvia: Decline in annual consumer prices eases in June

July 8, 2016

In June, consumer prices were unchanged over the previous month, which came in below the 0.6% increase observed in the previous month. According to the Statistical Institute, the monthly inertia stemmed mainly from higher prices for transport being cancelled out by lower prices for clothing and footwear. On an annual basis, consumer prices fell 0.5% in June, which was above the 0.8% fall registered in May. June’s print marked the softest fall since January 2016. The annual average variation in consumer prices fell from minus 0.2% in May to minus 0.3% in June, the lowest reading since January 2011.

Moreover, harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—increased 0.1% month-on-month in June, which came in below the 0.7% rise observed in May. HICP consumer prices fell 0.6% annually in June, which followed a 0.8% fall in May. The annual average variation in harmonized prices fell from minus 0.2% in May to minus 0.3% in June.

The Central Bank expects HICP inflation to remain, on average, flat this year. FocusEconomics Consensus Forecast panelists expect HICP inflation to average 0.2% in 2016, which is down 0.1 percentage points from last month’s projection. For 2017, the panel expects inflation to average 1.9%.


Author:, Economist

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Latvia Inflation June 2016 0

Note: Month-on-month changes and annual variation of consumer price index (CPI) in %.
Source: Central Statistics Bureau.


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