Latvia: Inflation continues to rise in December
January 11, 2017
Consumer prices increased 0.6% in December compared to the previous month, up from November’s 0.2% rise. According to the Central Statistical Bureau, December’s figure was mainly driven by higher prices for food, alcohol and tobacco, transport and communication, which more than offset falls in the prices of clothing and footwear and furnishing.
Inflation jumped from 1.3% in November to 2.2% in December, marking the highest rate since May 2012. Due to the rise, the annual average variation in consumer prices moved into positive territory, passing from a flat reading to 0.2%.
Harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—increased 0.6% month-on-month in December, which was above the 0.1% rise in November. HICP inflation shot up from 1.2% in November to 2.1% in December, while the annual average variation in HICP inflation inched up from a flat reading in November to 0.1% in December.
Author: Oliver Reynolds, Economist