Latvia: Inflation rises to highest level in almost two years
April 8, 2011
In March, consumer prices rose 0.7% over the previous month, which was more than double the 0.3% increase tallied in February. The monthly rise reflected higher prices for clothing and footwear, as well as for transport, amidst escalating fuel prices. Owing to the monthly price spike, annual headline inflation rose from 4.0% in February to 4.2% in March, which represented the highest inflation rate since May 2009. That said, HICP inflation (based on the harmonized index of consumer prices) rose from 3.8% in February to 4.1% in March, pushing annual average HICP inflation to 0.7%, which marked the first positive reading after ten consecutive months of annual average inflation mired in negative territory. In its January macroeconomic development report, the Central Bank expects HICP inflation to average 2.4% this year.
Author: Ricardo Aceves, Senior Economist