The annual inflation rate in Latvia dropped to 2.8 percent in March 2019 from 2.9 percent in the previous month. It is the lowest inflation rate since December, as prices slowed mostly for housing (5.7% vs 6.2% in February); alcoholic beverages & tobacco (5.4% vs 8.4%) and clothing & footwear (0.7% vs 2.1%). In contrast, cost advanced faster for food & non-alcoholic beverages (2.3% vs 1.0%); transport (1.2% vs 0.5%); recreation & culture (2.8% vs 2.5%) and communication (2.6% vs 1.8%). On a monthly basis, consumer prices inched up 1.1 percent, after increasing 0.1 percent in the prior month. Inflation Rate in Latvia averaged 3.64 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 2.70 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 2.00 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.