Latvia's consumer price index (CPI) grew 2.8% y/y in October, data released by the country's Central Statistical Bureau (CSB) on November 8 showed.
The reading means price growth slackened marginally following the 2.9% y/y growth rate seen in September. Price growth still appears to be under demand-led pressure from the tightened labour market pushing up wages and the return of EU-funded investment.
Inflation has now grown for 14 months straight, in line with forecasts for a decisive pick-up in CPI this year after the index barely moved in 2016.
As in September, all but two segments recorded annual price growth in the tenth month. Prices in the food segment were the main driver behind the headline figure, growing 5.3% y/y. Prices in the transport segment also contributed, expanding 2.2% on the year in October, while the prices of miscellaneous goods jumped 7.6%.
The CPI is expected to grow by 2.9% in 2017, according to the autumn forecast from European Commission. The index added just 0.1% last year.
In monthly terms, prices grew 0.7%, compared to a growth of 0.3% the previous month.