Latvia: Inflation remains unchanged in December
January 9, 2013
In December, consumer prices remained flat over the previous month, which came in above the 0.1% drop observed in November. The subdued reading showed how higher prices for food and for transport were offset by a sharp decline in prices for clothing and footwear.
Meanwhile, annual headline inflation remained unchanged at 1.6% for the second consecutive month. HICP inflation (based on the harmonized index of consumer prices) inched up from 1.5% in November to 1.6% in December, driving annual average HICP inflation to 2.3% for 2012. The reading was well below the 4.2% recorded for 2011 and broadly in line with last month's Consensus Forecast.
The Central Bank expects HICP inflation to also average 2.3% in 2013
Author: Ricardo Aceves, Senior Economist