Producer prices in Latvia increased 3.1 percent year-on-year in May of 2019, easing from a 3.8 percent rise in the previous month. It was the lowest producer inflation since December of 2017, as cost slowed for manufacturing (1.7 percent from 2.6 percent in April); electricity, gas, steam and air conditioning supply (7.9 percent from 8 percent) and water supply, sewerage, waste management and remediation activities (10.8 percent from 11.5 percent). On the other hand, prices advanced faster for mining and quarrying (3.5 percent from 3.4 percent). On a monthly basis, producer prices decreased 0.6 percent, down from a 0.4 percent gain in April. Producer Prices Change in Latvia averaged 4.44 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 3.50 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 2.70 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.