Latvia: Inflation accelerates in August
September 8, 2011
In August, consumer prices fell 0.3% over the previous month, following a price drop of the same magnitude in July. The reading marked the second consecutive decline in consumer prices and reflected lower prices for food and non-alcoholic beverages (-2.1% month-on-month), as well as for transport (-0.1% mom). Despite the monthly drop, annual headline inflation rose from 4.3% in July to 4.7% in August. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) rose from 4.2% in July to 4.6% in August, which pushed annual average HICP inflation to 3.3%. In its July macroeconomic development report, the Central Bank expects HICP inflation to average 4.7% this year, which was revised up from its previous 2.7% estimate.
Author: Ricardo Aceves, Senior Economist