Latvia: October consumer prices flat over same month last year
November 7, 2013
In October, consumer prices increased 0.4% over the previous month (September: +0.3% month-on-month). According to the statistical office, the monthly rise reflects an increase in prices for clothing and footwear as well as for food.
Consumer prices remained unchanged in October over the same month last year (September: -0.4% year-on-year). Meanwhile, HICP inflation (based on the harmonized index of consumer prices) fell from minus 0.1% in August to minus 0.4% in September, the latest month for which data are available. Annual average HICP inflation dropped to 0.5% in September (August: 0.7% yoy).
The Central Bank expects HICP inflation to average 0.7% in 2013. FocusEconomics Consensus Forecast panelists expect HICP inflation to average 0.5% this year, which is down 0.4 percentage points from last month's projection. For 2014, the panel expects HICP inflation to average 2.5%, which is unchanged from last month's estimate.
Author: Ricardo Aceves, Senior Economist