Latvia: Inflation edges up in August

Consumer prices fell 0.1% over the previous month in August, moderating from July’s 0.8% contraction. According to Latvia’s Central Statistical Bureau, prices for just 3 of the 12 components of the index fell from the previous month. Nevertheless, markedly lower prices for food and transport easily offset higher prices for clothing and footwear, and health.

Inflation ticked up to 2.8% in August, from 2.6% in July. Meanwhile, annual average inflation edged down for the first time in five months and came in at 2.4% in August (July: 2.5%).

Harmonized consumer prices remained unchanged from the previous month in August, contrasting the previous month’s 0.8% decrease. Meanwhile, harmonized inflation came in at 2.8% in August, up from July’s 2.7%. Finally, annual average harmonized inflation moderated from 2.5% to 2.4%.

Latvia Inflation Forecast

FocusEconomics panelists see harmonized inflation averaging 2.7% in 2018, which is up 0.1 percentage points from the previous month’s forecast, and 2.6% in 2019.