Latvia: Inflation declines further in December
January 17, 2018
In December, consumer prices rose 0.1% from the previous month, matching November’s increase. According to Latvia’s Central Statistical Bureau, six out of the 12 components of the index increased. Prices for transport and recreation and culture recorded the biggest increases; the increase in prices for transport mainly due to higher prices petrol and diesel. On the other hand, the largest drop was recorded in prices for clothing and footwear, which were affected by seasonal sales.
Inflation came in at an over one-year low of 2.2% in December, down from 2.7% in November. Nevertheless, average annual inflation remained stable at November’s 2.9%.
Harmonized consumer prices remained unchanged month-on-month in December, following the 0.1% uptick recorded in November. Meanwhile, HICP inflation came in at a one-year low of 2.2% in December, below November’s 2.7%. Meanwhile, average HICP inflation rose remained unchanged at November’s 2.9%, which marked the highest rate in over five years.
Latvia Inflation Forecast
FocusEconomics Consensus Forecast panelists expect HICP inflation to average 2.4% in 2018, which is up 0.1 percentage points from last month’s projection. For 2019, the panel expects HICP inflation to average 2.5%.