Latvia: Inflation slows for third consecutive month to 31-month low
April 9, 2013
In March, consumer prices jumped 0.5% over the previous month, which contrasts the 0.1% drop recorded in February and marks the fastest increase in six months. The reading reflects a notable increase in prices for clothing and footwear as well as for food.
Despite the monthly jump, annual headline inflation inched down from 0.3% in February to 0.2% in March, which represents the lowest level in 31 months. Meanwhile, HICP annual inflation (based on the harmonized index of consumer prices) fell from 0.6% in January to 0.4% in February, the latest month for which data are available, driving annual average HICP inflation to 1.8%.
The Central Bank expects HICP inflation to average 2.0% in 2013. FocusEconomics Consensus Forecast panellists also expect HICP inflation to average 2.0% this year, which is down 0.1 percentage points from last month's projection. For 2014, the panel expects HICP inflation to average 2.8%.
Author: Ricardo Aceves, Senior Economist