Latvia: Inflation falls notably in July
August 10, 2015
Latvia’s consumer prices dropped 0.9% over the previous month, which came in well below the 0.3% decline registered in June. The decrease was mainly the result of a drastic decline in prices for clothing and footwear (-7.9% month-on-month) and a fall in prices for food and housing.
Inflation registered a sharp decline for a second consecutive month. After falling from 1.1% in May—a 30-month high—to 0.6% in June, inflation declined to a flat reading in July, which marked a five-month low.
Harmonized consumer prices decreased 1.1% month-on-month in July (June: -0.1% mom) and fell 0.2% over the same month last year (June: +0.7% year-on-year). Annual average HICP inflation inched down from 0.6% in June to 0.5% in July.
Author: Ricardo Aceves, Senior Economist