The annual inflation rate in Latvia fell to 2.6 percent in September 2019 from 3.2 percent in the previous month. This is the lowest inflation rate since last December, as prices slowed mostly for food & non-alcoholic beverages (2.4 percent vs 4.5 percent in August); alcoholic beverages & tobacco (4.8 percent vs 5.6 percent); clothing & footwear (1.8 percent vs 3.5 percent) and restaurants & hotels (3.7 percent vs 4.5 percent). Also, prices dropped for transport (-0.2 percent vs 0.3 percent) and education (-0.4 percent vs 2.6 percent). On the other hand, cost advanced faster for housing & utilities (4 percent vs 3.9 percent); recreation & culture (4.6 percent vs 3.5 percent); health (2.1 percent vs 1.7 percent); miscellaneous goods & services (1 percent vs 0.7 percent) and furnishings (2.2 percent vs 1.8 percent). On a monthly basis, consumer prices edged up 0.1 percent, after increasing 0.2 percent in the previous month. Inflation Rate in Latvia averaged 3.62 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 2.90 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 2.40 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.