Manufacturing drives growth of Latvian producer price inflation in August

Manufacturing drives growth of Latvian producer price inflation in August
Factory gate prices grew for a seventh straight month.
By bne IntelliNews September 22, 2017

Latvia's producer price index (PPI) grew 3.3% y/y in August, data from the Central Statistical Bureau (CSB) showed on September 21.

The reading shows factory gate prices growing for a seventh straight month. The index shed 0.3pp versus the July reading. PPI gained 0.1% in monthly terms in August, 0.4pp slower than in the previous month.

Despite slowing down, PPI inflation points to persisting inflationary pressure in Latvia. Headline inflation came in at 3.1% y/y in August. CPI will grow 2.3% in 2017, according to the European Commission. Last year, inflation pushed to just 0.1%.
 
Price growth in the manufacturing segment drove the annual expansion in factory gate prices as it gained 4% y/y in August. That was offset to an extent by deflation in the utilities segment, where prices contracted 0.2% on the year.

In the water supply segment prices grew 6.8% y/y, while in mining and quarrying, the price growth came in at 0.8%.

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