Latvia’s consumer price index (CPI) grew 2.6% y/y in December, data released by the country’s Central Statistical Bureau (CSB) showed on January 11.
Price growth eased 0.4pp compared to November. Inflation has now grown in y/y terms for 28 months straight, in line with forecasts for a pick-up in CPI in 2017 and 2018 after the index barely moved in 2016.
All segments recorded annual price growth in December. Price growth in the housing segment was the main driver behind the headline figure, growing 4.8% y/y.
Price growth of alcohol and tobacco, as well as in transport and health, proved other key drivers.
In monthly terms, prices retreated 0.4% in December, compared to a fall of 0.1% m/m the preceding month.
CPI growth is expected at 2.7% in 2019, the European Commission claims in its autumn economic forecast.