International Internet Magazine. Baltic States news & analytics
Thursday, 29.09.2016, 08:03
The macroeconomic indicators available at this time unfortunately confirm our previously expressed concern: the Latvian economy is cooling down. The year 2016, in all likelihood, will be the year with the lowest growth since the crisis, reports in Forecasts of Latvijas Banka.
Keyword tags: Analytics, Banks, EU – Baltic States, Financial Services, GDP, Inflation, Latvia, Statistics
Lithuania's EU-harmonized annual inflation rate in August, at 0.5 %, was higher than the average rate in the euro area and that in the whole EU, figures from Eurostat showed on Thursday, reports LETA.
According to the data of the Central Statistical Bureau, the consumer price level in August was slightly lower month-on-month, due to seasonal factors (by 0.7%), but remained the same year-on-year. The low inflation still reflects supply-side factors, slower economic growth does not create the conditions for the rise in demand and pressure on prices. Therefore, it is expected that in the coming months inflation, albeit positive, will remain low.
Statistics Lithuania informs that in August 2016, compared to July, prices for consumer goods and services decreased by 0.5%. The overall price change was mainly influenced by a decrease in prices for vegetables, spirits, fuels, footwear, as well as by an increase in prices for tobacco products, bread and cereals, package holidays.
Latest data of the Central Statistical Bureau (CSB) show that during the year* (in August 2016, compared to August 2015) the average level of consumer prices did not change. Prices of goods decreased by 1.2%, while prices of services grew by 3.0%.
In July, Latvian consumer prices increased 0.1% against the same month a year ago in what was the smallest annual inflation rate among all EU member states, according to the latest data released on Thursday by Eurostat.
According to the Central Statistical Bureau data, the consumer price level in July was slightly lower than in June (by 0.3%) and only 0.1% higher than in July 2015. To a great degree, the low inflation is still a reflection of supply side factors; the slackening in the rate of Latvian economic growth is also creating a dampening pressure on prices and inflation can be expected to remain low in the coming months as well.