International Internet Magazine. Baltic States news & analytics
Wednesday, 26.04.2017, 01:24
Latvia had the European Union's highest inflation this past March year on year, according to Eurostat data released on Wednesday.
Keyword tags: Analytics, EU – Baltic States, Inflation
In line with forecasts, the fastest leap of consumer prices is behind us. In March, consumer prices increased by 3.4% year-on-year – the annual inflation hardly changed compared to February (when this indicator was at 3.3%). In the coming months, the year-on-year inflation will hover around the 3% mark. The most important risk facing the inflation forecast currently is the future dynamics of oil prices.
The Bank of Latvia has raised the inflation forecast for this year from 1.6% to 2.7%, the bank reported.
There is no point in being afraid of thunder – lightning is the real danger. Thunder just reflects with a lag the flashes of lightning by way of sound. An increase in consumer prices is a similar story: it is an objective reflection of previous developments on the global commodity markets.
The latest data of the Central Statistical Bureau (CSB) show that during the year* (in February 2017, compared to February 2016) the average level of consumer prices increased by 3.3%. Prices of goods grew by 3.4% and prices of services by 3.0%.
Inflation continued to rise in Estonia, and it was at its fastest for four years in February. Inflation is being driven by higher global prices for oil and food, and by higher excise rates. Core inflation has also risen in recent months because of service prices