Latvia: Latvia registers first annual fall in consumer prices in January since December 2013
February 9, 2015
In January, consumer prices rose 0.1% over the previous month, which contrasted the 0.7% drop registered in December. January’s increase was the result of higher prices for housing, due to the end of the liberalization of energy fees, which shot up nearly 28% over the previous month. Conversely, prices for transport as well as for clothing and footwear exerted a downward pressure on consumer prices in January.
Consumer prices fell 0.4% over the same month last year, which contrasted the 0.2% increase observed in December. The reading marked the first annual decline since December 2013. In the same vein, annual HICP consumer prices—based on the harmonized index of consumer prices— fell 0.3% annually in January, which contrasted the 0.3% increase tallied in December. Annual average HICP inflation inched down from 0.7% in December to 0.7% in January.
Author: Ricardo Aceves, Senior Economist