Latvia: Inflation falls sharply in January
February 8, 2013
In January, consumer prices slipped 0.2% over the previous month, which came in below the flat figure recorded in December. The monthly drop reflects lower prices for clothing and footwear as well as for housing, water and energy.
Building on the monthly fall, annual headline inflation plunged from 1.6% in December to 0.6% in January, which marks the lowest level in more than two years. HICP inflation (based on the harmonized index of consumer prices) inched up from 1.5% in November to 1.6% in December, driving annual average HICP inflation to 2.3%, the latest month for data are available.
The Central Bank expects HICP inflation to average 2.0% in 2013.