Latvia: Inflation stable in October
November 8, 2012
In October, consumer prices recorded a flat reading over the previous month, which contrasted the 0.5% increase observed in September. The monthly reading reflected higher prices for food and non-alcoholic beverages as well as for clothing and footwear. As a result of the monthly increase, annual headline inflation inched down from 1.8% in September to 1.7% in October. Meanwhile, in September, HICP inflation (based on the harmonized index of consumer prices) remained unchanged at August's 1.9% (the latest month for which data are available). Consequently, annual average HICP inflation dropped from 3.1% in August to 2.9% in September. The Central Bank expects HICP inflation to average 2.4% this year, before falling to 2.0% in 2013.
Author: Ricardo Aceves, Senior Economist