Latvia: Consumer prices rise after two consecutive declines
July 8, 2013
In June, consumer prices rose 0.2% over the previous month, which came in above the 0.1% increase tallied in the preceding month. The monthly increase reflects higher prices for food as well as for alcoholic beverages and tobacco.
As a result of the monthly reading, annual headline inflation was 0.2% in June (May: -0.1%), the first positive result after two consecutive months of declining prices. Meanwhile, HICP annual consumer prices (based on the harmonized index of consumer prices) inched up from minus 0.4% in April to minus 0.2% in May, the latest month for which data are available. As a result, annual average HICP inflation dropped to 1.1% (April: 1.3% year-on-year).
The Central Bank expects HICP inflation to average 2.0% in 2013. FocusEconomics Consensus Forecast panellists expect HICP inflation to average 1.8% this year, which is unchanged from last month's projection. For 2014, the panel expects HICP inflation to average 2.8%.
Author: Ricardo Aceves, Senior Economist