Latvia: Inflation continues to soften in October
November 17, 2017
In October, consumer prices rose 0.7% from the previous month, above September’s 0.2% increase and the highest reading in seven months. According to the country’s Central Statistical Bureau, seven out of the 12 components of the index increased. Prices of clothing and footwear recorded the biggest increase, because goods of the winter season continued to enter the market, and food and transport prices also rose considerably; the latter on the back of higher fuel prices. On the other hand, prices for recreation and culture dropped the most, influenced by lower prices for package holidays.
Inflation came in at 2.8% in October, down from September’s 2.9%. Nevertheless, the average annual inflation increased from 2.7% in September to 2.8% in October—the highest since September 2012.
Harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—increased 0.4% month-on-month in October, following the 0.2% rise recorded in September. Meanwhile, HICP inflation eased to 2.7% in October, down from September’s 3.0% reading. However, average HICP inflation rose from 2.6% in September to 2.8% in October, the highest rate in over five years.