Latvia: Inflation falls to lowest level in over one year
February 8, 2012
In January, consumer prices jumped 0.8% over the previous month, which contrasted the flat figure recorded in December. The monthly jump was mainly the result of rising prices for housing, water, electricity and gas as well as for food and non-alcoholic beverages. Despite the monthly increase, annual inflation fell from 4.0% in December to 3.6% in January, which represents the lowest level observed since December 2010. Meanwhile, annual average HICP inflation (based on the harmonized index of consumer prices) closed 2011 at 4.2%. As outlined in its January Macroeconomic Developments report, the Central Bank expects HICP inflation to average 2.4% this year, which is slightly down from its previous 2.8% estimate.
Author: Ricardo Aceves, Senior Economist