Latvian annual inflation leapt to 2.6% in May

Latvian annual inflation leapt to 2.6% in May
By Linas Jegelevicius in Vilnius June 9, 2021

In May 2021, the average level of consumer prices in Latvia increased by 2.6% y/y and 1.7% m/m, Latvia’s Central Statistical Bureau (CSB) announced on June 8.

Y/y, in May 2021 the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to transport, food and non-alcoholic beverages, goods and services related to recreation and culture, healthcare, alcoholic beverages and tobacco products, clothing and footwear, the CSB said.

Swedbank economist Laura Orleane said that the annual price increase was affected by the price level decline observed in spring 2020. SEB Bank macroeconomic expert Dainis Gaspuitis said that inflation remains strong.  He said “time will tell for how long”, adding that inflation has yet to reach its peak in Latvia.

The greatest pressure on the price changes was put by the rise in prices of food and non-alcoholic beverages, goods and services related to transport, alcoholic beverages and tobacco products, restaurant and hotel services, furnishings, as well as by the fall in prices of goods and services related to recreation and culture.

Compared to 2015, in May 2021 consumer prices were 11.5% higher. Prices of goods increased by 9.8% and prices of services by 15.6% over the time.

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