Latvia: Inflation falls in October
November 8, 2011
In October, consumer prices rose 0.2% over the previous month, which represented half the 0.4% increase recorded in September as well as the 0.4% rise observed in the same month last year. The main drivers behind the monthly rise were higher prices for food and beverages, as well as for clothing and footwear, which were offset by lower prices for alcoholic beverages and housing. As a result of the subdued monthly reading, annual headline inflation fell from 4.6% in September to 4.4% in October, which represented the second consecutive month that inflation eased. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) dropped from 4.5% in September to 4.3% in October, which drove annual average HICP inflation to 3.9%. The Central Bank expects HICP inflation to average 4.7% this year.
Author: Ricardo Aceves, Senior Economist