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Wednesday, 22.02.2017, 10:21
The annual inflation in January continued to climb rapidly – consumer prices rose by 2.9% year-on-year. Within five months, inflation, starting at zero, reached an impressive level. There is no reason to expect similarly fast inflation rise during the next few months. All this year, however, inflation will remain close to 3%.
Keyword tags: Analytics, Banks, Direct Speech, Inflation, Latvia
The latest data of the Central Statistical Bureau (CSB) show that during the year* (in January 2017, compared to January 2016) the average level of consumer prices increased by 2.9%. Prices of goods grew by 2.8% and prices of services by 3.1%.
Consumer price inflation climbed as oil and food became more expensive on the world market. The Eesti Pank December forecast expected average inflation for this year to be around 3.0%, and current developments are in line with that.
This time, the economic analysts were unanimous in their assessment that inflation would rise, but the actual data still exceeded the forecast; and it was the result of supply side factors. In December, consumer prices rose 0.6% month-on-month and 2.2% year-on-year. This ended the four-year period of very low (close to zero) inflation.
The annual average inflation (12 months of 2015 against 12 months of 2016) in Latvia was 0.1% last year, according to the Latvian Central Statistical Bureau. The latest data of the Central Statistical Bureau (CSB) show that during the year* (in December 2016, compared to December 2015) the average level of consumer prices increased by 2.2%. Prices of goods grew by 1.7% and prices of services by 3.4 %.
Inflation was affected most in December by fuel, seasonal goods and air tickets. Average inflation in 2016 was close to 0%. Inflation will rise to around 3% in 2017.
In November this year, Latvia recorded the sixth highest inflation rate among EU member states, according to the latest data released by Eurostat on Friday.