Flash comment: Latvia - CPI September, 2019
Inflation has slowed down
In September, the annual rate of inflation slowed down to 2.6% that is the lowest value in 2019. The prices of goods’ were rising by 2.4% and contributed to annual inflation the most, but prices of services’ were rising by 3%. 

  

The main determinants of increasing consumer prices were food, housing goods and services, alcohol and tobacco. Food prices in September 2019 were 2.4% higher than the last year. The prices of bread and cereals, as well as meat and meat products played the biggest role, while the potatoes’ price growth was the fastest one. Prices for housing services rose by 4.0% in September comparing to the previous year. Higher electricity tariffs outperformed reduced natural gas tariffs for households (introduced in July) that results in rapid price growth. The prices of alcohol and tobacco were 4.8% higher in September.

Average annual inflation of 9 months was 3%. We expect price growth to remain moderate. Annual inflation in 2019 could be close to 2.9%.

For more information please contact Ms. Laimdota Komare, +371 67444213, laimdota.komare@swedbank.lv 

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