The annual inflation rate in Latvia dropped to 2.9 percent in July 2019 from 3.0 percent in the previous month. It was the lowest inflation rate since March, as prices slowed for housing & utilities (2.6 percent vs 4.3 percent in June) and miscellaneous goods & services (1.4 percent vs 1.8 percent) while transport cost fell (-0.2 percent vs 0.7 percent). On the other hand, prices advanced faster for food & non-alcoholic beverages (4.2 percent vs 4.1 percent); alcoholic beverages & tobacco (5.6 percent vs 4.8 percent); recreation & culture ( 3.1 percent vs 3.0 percent); clothing & footwear (2.7 percent vs 1.3 percent); furniture & household equipment (2.8 percent vs 2.6 percent) and health (2.2 percent vs 1.9 percent). On a monthly basis, consumer prices dropped 0.1 percent, after increasing 0.3 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 2.80 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.