CPI

The annual inflation in Mach 2013 remained at a low level (0.2%), with consumer prices undergoing a seasonal rise of 0.5% month-on-month. That the annual inflation remained so low was rather determined by the dynamic of particular factors from earlier (including base) periods instead of new ones.

The annual inflation in January 2013 continued to drop, benefiting from the favourable effects of both the stable global food prices and the developments in the prices of oil over previous months under whose impact it was possible to slightly reduce the natural gas and thermal energy tariffs. Thus the overall rise of the prices of food and energy was down in January year-on-year and the annual inflation level dropped to its lowest since September 2010 (0.6%).

The annual inflation in Latvia remained low in December at 1.6%. Month-on-month, the average consumer price level did not change.

In the direction of growth it was influenced by a rise in unprocessed foodstuff prices, as well as raised fuel prices in Latvia (despite a fall in the exchange of the US dollar and the global prices of oil products were stable).

In September 2012, with the consumer price level rising by 0.5%, the annual inflation remained low at 1.8%.

With consumer prices down by 0.3% month-on-month, the annual inflation in August remained low (at the July level of 1.7%). The 12-month average inflation dropped to 3.1%.

The annual inflation in July continued to drop in Latvia, reaching a mere 1.7%. Within a month, consumer prices dropped 0.5%, and the 12-month average inflation (according to national data at 3.4%) approached the Maastricht criterion.

The annual inflation in June continued down reaching 1.9%. Within a month consumer prices dropped by 0.1%. Domestic factors that resulted in a drop in the annual inflation were driven by the so-called base effect – in June of last year the excise tax was raised for several products and that affected the annual inflation level for 12 months.

The rise in consumer prices has abated and their average level went down 0.2% in May, with the annual inflation thus dropping to 2.2%.

In April 2012, the annual inflation continued to drop, with its drop within a month, 0.5pp to 2.8%, reflecting the so-called base effect similar to last-year's rise in electrical power tariffs in April of last year and confirming the dependence of a small economy on the fluctuations in global prices.