Compared to April, consumer prices in Latvia in May could have increased by 0.5 – 0.6%. This means that in comparison with May 2020, inflation in Latvia in May 2021 may reach 2.6 – 2.7%, according to bank analysts.
Laura Orlina, an economist at the Swedish bank in Sweden, predicts that consumer prices in May may have risen by 0.6% compared to April, while inflation could reach 2.7% this year.
“The rapid rise in inflation will continue in May 2021,” Orlin said.
She says the average price level has risen due to clothing and footwear prices. As in April, it reflects the desire of the population to reopen shopping centers and other stores.
The rise in food and motor fuel prices also played a major role in the rise in prices.
Orlin says the annual price increase was driven by lower price levels in the spring of 2020.
SEB macroeconomist Dainis Gašpuitis predicts that consumer prices in Latvia will have increased by 0.5% compared to April 2021. This means that annual inflation could have reached 2.6%.
“Inflation is still strong. Time will tell how long, ”says Gašpuitis, adding that inflation has not yet peaked.
He also says that energy prices are still leading, adding that higher prices for food, clothing, footwear and services are also expected.
“In the coming months, as constraints ease, we will be able to more clearly define the impact of the pandemic on prices,” says Gašpuitis.
The Central Statistical Bureau of Latvia plans to report data on price changes in May around Tuesday, June 8.
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