Latvia: Inflation drops at the outset of the year
February 10, 2016
In January, consumer prices fell 0.6% over the previous month, which followed the 0.3% decrease observed in the previous month. The statistical office stated that the faster drop in January stemmed from lower prices for clothing and footwear, transport as well as for alcoholic beverages and tobacco.
Consumer prices swung from a 0.3% annual increase in December to a 0.3% decrease in January, which marked the first drop since October. Annual average inflation was unchanged in January at December’s 0.2%.
Moreover, harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—decreased 0.7% month-on-month in January, which followed the 0.3% drop observed in December. HICP prices also swung from a 0.4% annual increase in December to a 0.3% drop in January. Annual average HICP inflation averaged 0.2% in January, which was in line with December’s reading.
Author: Ricardo Aceves, Senior Economist