Latvia: Inflation falls to 10-month low in December
January 9, 2012
In December, consumer prices remained unchanged over the previous month, which marked the second consecutive month with consumer prices unaltered. The subdued figure was the result of higher prices for food and non-alcoholic beverages, as well as for alcoholic beverages and tobacco, which were offset by declining prices for clothing and footwear, as well as for transport. Annual inflation edged down from 4.2% in November to 4.0% in December, which was slightly below market expectations that had inflation inching down to 4.1%. The reading represented the lowest level observed since February 2011. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) inched down from 4.0% in November to 3.9% in December, which drove annual average HICP inflation to 4.2%. The Central Bank expects HICP inflation to average 2.8% this year.
Author: Ricardo Aceves, Senior Economist