Average inflation was 0.2% in 2015

Figures released by the Central Statistics Office (CSB) Tuesday showed inflation for 2015 as a whole stood at a very modest 0.2% in Latvia.

"As compared to the previous 12 months, the average annual consumer price level rose by 0.2 %. In 2014, the average level of consumer prices over 12 months increased by 0.6 %," CSB said.

"The trend of average consumer price level – with distinct downturn since the beginning of 2012 – was similar in all three Baltic States. In 2014, in Latvia, unlike in other Baltic States, an upward trend was observed, whereas in 2015, similarly as in Lithuania, the trend was moderately downward," CSB added.

Annual inflation in December 2015 was 0.3%.

Compared to November, the average consumer price level in December 2015 actually decreased by 0.3 %.

Commenting on the figures, Swedbank said: "The growth-limiting impact from global commodity prices will start to gradually ease going forward, and domestic factors - for instance, strong wage growth and excise tax hikes for fuel products and alcohol will continue to support consumer prices in Latvia.

"The drop in oil prices, though, was larger than initially expected, and oil prices are likely to remain low for a longer period of time – thus the consumer price growth in Latvia this year will be lower than the 1.5% estimated before. The growth  likely will be closer to 1%," swedbank predicted.

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Economy
Economy