Producer prices in Latvia increased 0.4 percent year-on-year in August of 2019, easing from a 1.5 percent rise in the previous month. It was the lowest producer inflation since January of 2017, as cost slowed for electricity, gas, steam & air conditioning supply (3.4 percent vs 7.2 percent in July); water supply, sewerage, waste management & remediation activities (4 percent vs 4.1 percent) and mining & quarrying (0.9 percent vs 1.6 percent). Also, manufacturing prices fell 0.4 percent, down from a 0.1 percent gain in July. On a monthly basis, producer prices edged down 0.1 percent, following a 0.2 percent drop in the prior month. Producer Prices Change in Latvia averaged 4.39 percent from 2005 until 2019, reaching an all time high of 17.70 percent in April of 2007 and a record low of -9.30 percent in August of 2009.
Producer Prices Change in Latvia is expected to be 1.20 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Producer Prices Change in Latvia to stand at 1.80 in 12 months time. In the long-term, the Latvia Producer Prices Change is projected to trend around 2.40 percent in 2020, according to our econometric models.