Latvia: Inflation slows in September
October 10, 2011
In September, consumer prices added 0.4% over the previous month, which contrasted the 0.3% drop registered in August. According to the Statistics Office, higher prices for clothing and footwear, as well as for alcoholic beverages and tobacco, were the main drivers behind the monthly jump. Despite the monthly rise, annual headline inflation edged down from 4.7% in August to 4.6% in September. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) inched down from 4.6% in August to 4.5% in September, which drove annual average HICP inflation to 3.6%. In its July macroeconomic development report, the Central Bank expects HICP inflation to average 4.7% this year, which was revised up from its previous 2.7% estimate.