food prices

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 February 2013 continued to drop and was at 0.3%, with prices going down 0.1% month-on-month. Inflation was positively affected by the drop in regulated prices, since, as expected, the thermal energy tariffs went down as a result of the sales price of natural gas.

In October the average level of consumer prices in Latvia remained unchanged, with the prices of communication services, fuel, alcoholic beverages and seasonal tourism services dropping and those of foodstuffs and new season’s wearing apparel and footwear rising. Annual inflation reached its minimum level since autumn 2010, dropping to  1.6%. This indicator was smaller than expected as a result of competition among communication services and sales campaigns of sellers of alcoholic beverages as well as because of a greater drop in fuel prices.

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.  

The 0.6% month-on-month rise in consumer prices in March 2012 was primarily the result of seasonal factors, oil prices and, in part, the clamour in the food market.