Latvia: Inflation eases in July
August 16, 2017
In July, consumer prices dropped 0.7% from the previous month. The reading contrasted June’s 0.2% increase and marked the lowest reading in two years. According to the country’s Central Statistical Bureau, eight out of the thirteen components of the index decreased. The prices of clothing and footwear, goods and services related to transport, food and non-alcoholic beverages recorded the biggest decreases, while the prices alcohol and tobacco and health grew the most.
Inflation came in at a seven-month low of 2.7% in July, down from June’s 3.0%. Nonetheless, the average annual variation in consumer prices increased from 2.0% in June to 2.2% in July—the highest since December 2012.
Harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—fell 0.8% month-on-month in July, which contrasted the 0.4% rise recorded in June and marked the lowest print in two years. Meanwhile, HICP inflation fell to 2.6% in July from June’s 3.1% reading. Conversely, average HICP inflation rose from 1.9% in June to 2.2% in July, the highest rate in over four years.