Latvian inflation up on year, down on month

The latest data of the Central Statistical Bureau (CSB) released August 8 show that in July 2019, compared to July 2018, the average level of consumer prices rose by 2.9 %.

Prices of goods increased by 2.9 % and prices of services by 2.8 %.

"Compared to July 2018, in July 2019 the average level of consumer prices was mainly influenced by the rise in prices of food and non-alcoholic beverages, alcoholic beverages and tobacco products, goods and services related to housing, goods and services related to recreation and culture, as well as restaurant and hotel services," the CSB said.

Compared to June 2019, in July 2019 the average level of consumer prices decreased by 1.0 %. Prices of goods fell by 1.5 %, while prices of services rose by 0.3 %.

Latvia inflation trend July 2019

Over the month, prices of food and non-alcoholic beverages dropped by 1.1 %. Seasonal decline (of 9.4 %) in vegetable prices had the strongest lowering influence on the average price level within the group. Reduction was registered in prices of cheese and curd (of 4.9 %), coffee (1.3 %), dried fruit and nuts (4.0 %), pork (0.9 %), and soft drinks (3.9 %). Increase, in turn, was recorded in prices of dried, salted or smoked meat (of 1.3 %), fresh fruit (2.5 %) and pasta products (3.3 %).

Commenting on the data, Swedbank said: "In the first 7 months of this year, average annual inflation was slightly above 3%. If rely on the potential reducing factors in the coming months, this year's average annual inflation could be close to, but slightly below 3%."

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