Flash comment: Latvia - CPI October 2019
Annual inflation in October at 2.3%

In October, the annual rate of inflation softened comparing to higher rates in previous months. The annual inflation rate in October was 2.3%, with goods’ prices rising only by 1.9%, and services’ prices rising by 3%. Annual inflation was driven by increasing prices of food and beverages and services. Growth of non-food goods’ prices lessened and contributed less to inflation, likely because of decreasing price of fuel. 

In October, prices of such food products as bread and cereals and meat products, especially pork, continued to increase on annual basis. Previously, a sharp 2-digit increase in prices of fresh vegetables, excluding potatoes, had already moderated in September, and completely stopped in October as new crops entered the market. 

Prices for housing related services rose by 3.6% in October comparing to the previous year. While electricity prices increased, the price growth of housing related services was pulled down by slight decrease price of natural gas and diminishing solid fuel’s price. 

According to Swedbank's forecasts, average annual inflation will be around 2.9% this year. In 2020, we expect 2.4%.

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

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