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Swedbank economist Linda Vildava said that compared to May, consumer prices probably rose by 0.5% in June. Consequently, the annual inflation rate increased to 2.7%, she said.

“Fuel prices are expected to be the main inflation-fueling factor,” Vildava said, adding that inflation growth, most likely, was also driven by rising services prices as well as food prices. Meanwhile, a drop of clothing and footwear prices amid the start of the summer sales season had a reducing effect on Latvian consumer prices.

Dainis Gaspuitis, a macroeconomics expert at SEB Banka, told LETA that the consumer prices probably climbed 2.6% over the year.

“In June, the most striking change could be observed at fuel station which was brought about by a fast rise of the oil price. Food prices might have risen slightly. The price of thermal power did not change but water tariffs climbed in Riga and elsewhere. On the other hand, the sales season started gradually keeping prices down for clothes and footwear, but as usual, services prices will have climbed,” Gaspuitis commented.

The Central Statistical Bureau is due to release Latvia’s consumer price data for June next Tuesday, July 10.

In May 2018, Latvian consumer prices rose 0.3% from April, while the annual inflation rate (May 2018 against May 2017) increased to 2.3%. During the last 12 months, consumer prices rose 2.5% against the previous 12-month period.