Flash comment: Latvia - April 11, 2012
Annual consumer price growth to moderate further
- In March 2012, Latvian consumer prices increased by 0.6% compared to previous month. The main drivers of the monthly growth were prices of food (fruits and vegetables due to seasonal factors, as well as eggs), fuel, and clothing and footwear (seasonal factors as well).
- In annual terms CPI growth continued to decelerate. Prices in March were by 3.3% higher than a year ago (3.4% in February, 3.6% in January 2012).
- A fall in annual price growth is expected to become more pronounced in April, when effect from last year’s electricity tariff rise disappears. In the second half of the year a small pick-up in inflation rate is likely, though. Since oil price growth in the beginning was stronger than expected, we most likely will revise upwards our average inflation forecast for this year (from 2.4% forecast in January outlook).