Annual inflation in August reached 3.2%
In Latvia, annual inflation reached 3.2% in August 2019. It was above the average of 2018, but ranks only as third in 2019, after April and May highs.
The prices of alcoholic beverages and tobacco were the fastest growing (5.6% higher than the last year). The next most rapid increase of prices was in food and non-alcoholic beverages category (4.5%), and restaurants and hotels (4.5%).
In August, food and non-alcoholic beverages contributed to annual inflation the most. In the category of food products, the fastest growth in prices was observed for Latvian traditional products - vegetables and potatoes (28.9%), pork (12.1%), bread and cereals (8.5%). Prices of housing-related services increased by 3.9% over the year and settled as the second driver of inflation. The price of electricity grew the fastest - by 10.4%. Heat prices, on the other hand, have risen by 3.4%, while natural gas prices have fallen by 6.6%.
In the coming months, the annual rate is likely to slow down, with annual inflation remaining close to 3%.
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