Latvia: Inflation rises to 16-month high in April
May 12, 2014
In April, consumer prices rose 0.5% over the previous month, which came in above the 0.3% increase registered in March. The rise reflected higher prices for clothing and footwear as well as for food and alcoholic beverages and tobacco.
Annual inflation jumped from 0.3% in March to 0.8% in April, which marked the highest rate since December 2012. Moreover, annual HICP inflation also rose from 0.3% in March to 0.8% in April, which also represented a 16-month high. Annual average HICP inflation inched up from a flat reading in March to 0.1% in April.
The Central Bank expects HICP inflation to average 1.7% in 2014. FocusEconomics Consensus Forecast panelists expect HICP inflation to average 1.5% in 2014, which is down 0.2 percentage points from last month's projection. For 2015, the panel expects HICP inflation to average 2.3%.
Author: Ricardo Aceves, Senior Economist