Latvia: Inflation kicks in for the first time in July
August 8, 2016
In July, consumer prices fell 0.3% over the previous month and came in below June’s flat reading. According to the Central Statistical Bureau, the subdued print reflected that a decline in prices for goods—particularly clothing, food and alcohol— more than offset an increase in prices for services, mainly in telecommunication services.
Inflation inched up from a flat reading in June to 0.1% in July, which marked the first positive reading since December 2015. The annual average variation in consumer prices remained steady at June’s minus 0.3% rate in July.
Moreover, harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—decreased 0.3% month-on-month in July, which contrasted the 0.1% rise observed in June. HICP inflation was 0.1% in July (June: -0.6% year-on-year). The annual average variation in HICP stabilized at June’s minus 0.3% in July.
Author: Luis Lopez Vivas, Economist