The annual inflation rate in Latvia rose to 3.2 percent in August 2019 from 2.9 percent in the previous month. Prices increased further for food & non-alcoholic beverages (4.5 percent from 4.2 percent in July); housing & utilities (3.9 percent from 2.6 percent); recreation & culture (3.5 percent from 3.1 percent); and clothing & footwear (3.5 percent from 2.7 percent). Also, cost of transport advanced 0.3 percent, rebounding from a 0.2 percent fall in July. Meanwhile, prices eased for furniture & household equipment (1.8 percent from 2.8 percent); miscellaneous goods & services (0.7 percent from 1.4 percent); and health (1.7 percent from 2.2 percent). Additionally, inflation was steady for alcoholic beverages & tobacco (at 5.6 percent). On a monthly basis, consumer prices went up 0.2 percent, after declining 1.0 percent in the prior month. Inflation Rate in Latvia averaged 3.63 percent from 1998 until 2019, reaching an all time high of 17.70 percent in May of 2008 and a record low of -4.30 percent in February of 2010.
Inflation Rate in Latvia is expected to be 3.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Inflation Rate in Latvia to stand at 2.50 in 12 months time. In the long-term, the Latvia Inflation Rate is projected to trend around 2.20 percent in 2020, according to our econometric models.