Latvia's consumer price index (CPI) climbed 3.3% y/y in February, data released by the Central Statistical Bureau (CSB) on March 8 showed.
The reading sees price growth accelerate on the 2.9% expansion in January and marks the eighth successive rise in the CPI. The growth trend appears to be 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 0.4%, 0.3pp faster then in the previous month. All segments – with an exception of clothing and footwear, where prices fell 2% y/y – recorded growth. Prices in the transport segment grew the fastest, at 6.7%, with communication and food also recording solid growth, at 6.3% and 6.1%, respectively.
CPI is expected to grow 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.