Latvia: Inflation falls to 18-month low
June 8, 2012
In May, consumer prices fell 0.2% over the previous month, which contrasted the 0.6% increase tallied in April. The monthly drop reflected lower prices for transport as well as for household equipment. As a result of the monthly decline, annual headline inflation fell from 2.8% April to 2.2% in May, which represents the lowest level since November 2010. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) declined from 3.2% in April to 2.8% in May. Annual average HICP inflation dropped from 4.1% in April to 4.0% in May. The Central Bank expects HICP inflation to average 2.4% this year, before falling to 2.0% in 2013.
Author: Ricardo Aceves, Senior Economist