Latvia: Inflation falls in May
June 8, 2017
In May, consumer prices were unchanged from the previous month. The flat reading came in below April’s 0.4% rise. According to the country’s Central Statistical Bureau, nine out of the eleven components of the index observed an increase but was offset by a fall in the remaining two. The prices of food and non-alcoholic beverages recorded the biggest increase, while the prices of clothing and footwear dropped the most.
Inflation came in at 2.8% in May, down from April’s 3.4%. Despite this decline, the average annual variation in consumer prices increased from 1.4% in April to 1.7% in May—the highest since March 2013.
Harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—increased 0.2% month-on-month in May, which was below the 0.4% rise recorded in April. Meanwhile, HICP inflation in May fell to 2.7% in May from April’s 3.3% reading. Conversely, the annual average variation in HICP inflation rose from 1.3% in April to 1.6% in May, the highest since March 2013.
Author: Nihad Ahmed, Economist