Latvia Inflation October 2016

Latvia

Latvia: Inflation continues to climb in October

November 8, 2016

In October, consumer prices jumped 0.8% from the previous month, which came in above September’s 0.4% increase. According to the Central Statistical Bureau, the monthly jump stemmed from higher prices for food and non-alcoholic beverages, clothing, and transport.

Inflation shot up from 0.6% in September to 1.1% in October, the highest level in 17 months. Due to the jump, the annual average variation in consumer prices inched up from September’s minus 0.2% to minus 0.1% in October.

Harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—increased 0.6% month-on-month in October, which was up from the 0.4% rise in September. HICP inflation jumped to 1.1% in October from 0.5% in September. The annual average variation in HICP inflation inched up from minus 0.2% in September to minus 0.1% in October.

The Central Bank expects HICP consumer prices to stay flat this year. Due to a recovery in commodities prices, the Bank predicts that inflation will increase to 1.3%. FocusEconomics Consensus Forecast panelists expect HICP inflation to be flat in 2016, which is down 0.1 percentage points from last month’s projection. For 2017, the panel expects inflation to average 1.9%, which is unchanged from last month’s forecast.


Author:, Senior Economist

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Latvia Inflation October 2016

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


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