Latvia: Inflation falls to 15-month low
April 11, 2012
In March, consumer prices jumped 0.6% over the previous month, which was well above the 0.1% increase observed in February. The monthly price spike primarily reflected higher prices for clothing and footwear. Despite the monthly jump, annual inflation moderated from 3.4% in February to 3.3% in March, which represents the lowest level since December 2010. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) followed suit and fell from 3.3% in February to 3.2% in March. Annual average HICP inflation dropped from 4.2% in February to 4.1% in March. The Central Bank expects HICP inflation to average 2.4% this year, before falling to 2.0% in 2013.
Author: Ricardo Aceves, Senior Economist