Latvia’s consumer price index (CPI) grew 3.2% y/y in August, data released by the country’s Central Statistical Bureau (CSB) showed on September 9.
Price growth picked up 0.3pp compared to the annual reading recorded in the seventh month. Inflation has now persisted in y/y terms for 35 months straight.
All segments recorded annual price growth in August. Price growth in the food segment was the main driver of the headline figure by far, expanding 4.5% y/y compared to 4.2% y/y the preceding month.
Price growth in the housing as well as alcohol and tobacco segments proved other key drivers, growing 3.9% y/y and 5.6% y/y, respectively.
In monthly terms, prices inched up 0.2% in August, compared to a decline of 1% m/m the preceding month.
The main inflation drivers are expected to remain unchanged throughout 2019.
CPI growth is expected at 3.1% this year, the European Commission forecasts in its summer economic forecast, released in August. Swedbank puts price growth at close to 3% while SEB forecasts 2.2%. Inflation came in at 2.6% in 2018.