Latvia: Inflation falls to 30-month low in February
March 8, 2013
In February, consumer prices slipped 0.1% over the previous month. The reading followed the 0.2% drop recorded in January and marked the seventh decline in 10 months. The reading reflects lower prices for food and non-alcoholic beverages as well as for housing, water, electricity, gas and fuels.
Building on the monthly fall, annual headline inflation declined from 0.6% in January to 0.3% in February, which represents the lowest level in 30 months. HICP inflation (based on the harmonized index of consumer prices) plunged from 1.6% in December to 0.6% in January, driving annual average HICP inflation to 2.0%, the latest month for which data are available.
The Central Bank expects HICP inflation to average 2.0% in 2013. FocusEconomics Consensus Forecast panellists also expect HICP inflation to average 2.0% this year, which is down 0.1 percentage points from last month's projection. For 2014, the panel expects HICP inflation to average 2.8%.
Author: Ricardo Aceves, Senior Economist