Latvia's consumer price index (CPI) climbed 3.4% y/y in March, data released by the Central Statistical Bureau (CSB) on April 10 showed.
The reading sees price growth accelerate 0.1pp compared to February and marks the ninth successive month of positive inflation. The growth trend is in line with forecasts for a decisive pick up of inflation this year, after the index barely moved in 2016.
In monthly terms, prices grew 0.9%, 0.5pp faster then in the previous month. All segments – with an exception of clothing and footwear, where prices fell 2% y/y – recorded annual price growth. Prices in the communication and transport segments segment grew the fastest, at 6.9% and 6.4%, respectively. Food prices also contributed to growth in the headline figure, having expanded 5.4% on the year.
CPI is expected to grow an average 1.8% in 2017, according to the European Commission. Swedbank is less conservative, predicting prices will grow 2.5%. The index added just 0.1% last year, tipped into the black by a surge in December.