Swedbank economist Laura Orleāne forecasted for LETA that in March, compared to February, consumer prices could have risen by 0.8%, with inflation during the year amounting to 0.3%.
“In March 2021, the long period of deflation is likely to be over – with the average price level rising by 0.3% during the year,” said Orleans.
She noted that inflation in March was driven up by the alcohol and tobacco category, as well as rising fuel and food prices. “The increase in excise duty on alcohol led to an increase in the relevant product category, while fuel and food prices continued to follow global food and oil prices with delays,” said an economist at Swedbank.
In turn, SEB banka’s macroeconomic expert Dainis Gašpuitis forecasted for LETA that in March consumer prices could have increased by 0.7% compared to the previous month, thus consumer prices would grow by 0.2% during the year.
“In March, a sufficiently strong price increase is expected, where the primary role will be fuel price increase. Formally, the price level will also be affected by seasonal aspects – the end of the sales period and the arrival of new goods, as well as an increase in excise duties,” Gašpuitis said. .
The Central Statistical Bureau will release data on consumer price changes in March on Friday, April 9.
It has already been reported that consumer prices in Latvia in February this year increased by 0.4% compared to January, but during the year – in February this year compared to February 2020 – consumer prices decreased by 0.2%. At the same time, the 12-month average consumer price level decreased by 0.2% in February compared to the previous 12 months.
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