Latvia: Inflation rises to highest level in nearly five years in January
February 10, 2017
Consumer prices increased 0.1% in January compared to the previous month, down from December’s 0.6% rise. According to the Central Statistical Bureau, January’s print stemmed from a decline in prices for clothing and footwear due to a sales season, which offset higher food prices.
Inflation climbed from 2.2% in December to 2.9% in January, marking the highest rate since March 2012. As a result of the increase, annual average inflation rose from 0.2% in December to 0.4% in January.
Harmonized consumer prices—derived from the Harmonized Index of Consumer Prices (HICP)—also increased 0.1% month-on-month in January, which came in below the 0.6% rise in December. HICP inflation jumped from 2.1% in December to 2.9% in January, while the annual average variation in HICP inflation rose from 0.1% in December to 0.4% in January.
Author: Ricardo Aceves, Senior Economist