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Latvia saw deflation again in December

January 12 data of the Central Statistical Bureau (CSB) show that in December 2020, compared to December 2019, the average level of consumer prices decreased by 0.5%.

Prices of goods fell by 1.4 %, while prices of services rose by 1.6 %.

Compared to December 2019, in December 2020 the average level of consumer prices was mainly influenced by the drop in prices of goods and services related to transport, goods and services related to housing, clothing and footwear, miscellaneous goods and services, as well as rise in prices of food and non-alcoholic beverages, health care, goods and services related to recreation and culture, alcoholic beverages and tobacco products, restaurant and hotel services.

In December 2020, compared to November 2020, the average level of consumer prices remained unchanged. The average level of prices for goods decreased by 0.3 %, while for services - increased by 0.5 %. The most significant impact on price changes was due to the fall in prices of clothing and footwear, miscellaneous goods and services, furnishings, cultural and recreational goods and services, as well as the rise in prices for goods and services related to transport, goods and services related to housing.

You can read the full report on Central Statistical Bureau website.

"Even though deflation will still be observed in the first months of this year, it will accelerate in 2nd half, when the world will return to its pre-pandemic practices. Swedbank currently estimates a 1.5% average price increase in 2021," Swedbank commented on the figures.

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Economy
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