Latvia's consumer price index (CPI) expanded 2.2% y/y in December, data released by the Central Statistical Bureau (CSB) on January 11 showed.
December is the sixth month in a row in which Latvia has evaded deflation.
Inflation picked up speed from November's 1.3% and pushed average inflation in 2016 into the black at 0.1%, the CSB notes, more or less in line with estimates.
In monthly terms, prices grew 0.6% in December, clearly faster than the 0.2% growth seen the previous month. Most commodity groups saw prices increase on annual basis, the CSB data shows, but prices fell in clothing and footwear, housing, and furnishings, repeating the pattern from the previous month.
The biggest price growth came in the communications segment, where prices expanded 5.3%. In the food and health segments prices grew 4.8% and 2.9%, respectively.
Inflation will rebound to 2.5% in 2017, forecasts Swedbank. The European Commission is more cautious, predicting inflation of 1.8% this year.