Latvia: Inflation eases in December

Consumer prices fell 0.4% from the previous month in December, compared to a near-flat reading in the previous month (November: - 0.1% month-on-month). According to Latvia’s Central Statistical Bureau, the reading largely reflected lower prices for clothing and footwear more than offsetting higher prices for food.

Inflation fell to a five-month low of 2.6% in December, from 3.0% in November. Meanwhile, annual average inflation remained stable for the fourth consecutive month in December at 2.5%. Lastly, harmonized inflation moderated from 2.9% in November to 2.6% in December.

Latvia Inflation Forecast

FocusEconomics panelists see harmonized inflation averaging 2.6% in 2019, unchanged from the previous month’s forecast, and 2.4% in 2020.