inflation

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.

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).

The annual inflation in Latvia in November remained as low as in October, at 1.6%. The consumer price average was brought slightly up by a rise in foodstuff prices, and lowered by the prices of fuel and thermal energy as well as unregulated services.

Figure 1. Contribution of main groups of goods and services to monthly inflation, in percentage points 

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%.