Latvia: Inflation falls to lowest level in over a year
March 8, 2012
In February, consumer prices added 0.1% over the previous month, which came in below the 0.8% increase observed in January. The subdued reading reflected how higher prices for food as well as for alcoholic beverages and tobacco were partially offset by lower prices for clothing and footwear. As a result of the more moderate increase in February, annual inflation fell from 3.6% in January to 3.4%, which represents the lowest level since December 2010. Meanwhile, HICP inflation (based on the harmonized index of consumer prices) inched down from 3.4% in January to 3.3% in February. 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