Latvia: Inflation accelerates in August
September 20, 2017
In August, consumer prices dropped 0.2% from the previous month. The reading followed July’s sharper 0.7% decrease. According to the country’s Central Statistical Bureau, five out of the twelve components of the index decreased. The prices of alcohol and tobacco, and food recorded the biggest decreases, while prices for clothing and footwear, and recreation and culture grew the most.
Inflation came in at a four-month high of 3.1% in August, down from July’s 2.7%. Consequently, the average annual variation in consumer prices increased from 2.2% in July to 2.5% in August—the highest since October 2012.
Harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—fell 0.1% month-on-month in August, which followed the 0.8% decline recorded in July. Meanwhile, HICP inflation rose to 3.2% in August from July’s 2.6% reading. Accordingly, average HICP inflation rose from 2.2% in July to 2.4% in August, the highest rate in nearly five years.