Latvia: Inflation falls to lowest level in almost two years
August 8, 2012
In July, consumer prices fell 0.5% over the previous month, which followed the 0.1% drop observed in in June. The monthly declined reflected lower prices for clothing and footwear as well as for transport and communications. As a result of the monthly fall, annual headline inflation fell from 1.9% in June to 1.7% in July, which represents the lowest level since October 2010. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) dropped from 2.1% in June to 1.9% in July. Consequently, annual average HICP inflation dropped from 3.5% in June to 3.3% in July.
Author: Ricardo Aceves, Senior Economist