Latvian inflation slows down marginally in November

Latvian inflation slows down marginally in November
By bne IntelliNews December 10, 2017

Latvia's consumer price index (CPI) grew 2.7% y/y in November, data released by the country's Central Statistical Bureau (CSB) on December 8 showed.

The reading means price growth slackened marginally following the 2.8% y/y growth rate seen in October. 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 15 months straight, in line with forecasts for a decisive pick-up in CPI this year after the index barely moved in 2016. 

As in October, all but two segments recorded annual price growth in the eleventh month. Prices in the food and non-alcoholic beverages segment were the main driver behind the headline figure, growing 4.7% y/y, although that was a slowdown against the 5.3% y/y upward movement in October. 

Prices in the segment of “miscellaneous goods” also contributed, growing 8% y/y, while in the housing segment, prices expanded 2.6% on the year. Another important driver, the transport segment, saw prices grow 2.1% on the year.
 
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 0.1%, compared to a m/m growth of 0.7% in October.

 

Data

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