Consumer prices in Latvia may have increased 0.5 – 0.6% in May when compared to April. This means that when compared to May 2020, inflation in Latvia may have reached 2.6 – 2.7% in May 2021, according to banking analysts.
Swedbank economist Laura Orleāne predicted that consumer prices in May, when compared to April, may have increased 0.6%, with inflation potentially reaching 2.7% this year.
«Rapid inflation growth will continue in May 2021,» said Orleāne.
She says the average price level was pushed up by clothes and shoes prices. Like in April, it reflects residents’ desire for shopping malls and other stores to open up again.
Increase of food and motor fuel prices also played a major role in price increase.
Orleāne says annual price increase was affected by the price level decline observed in spring 2020.
SEB Bank macroeconomic expert Dainis Gašpuitis predicts consumer prices in Latvia may have increased 0.5% when compared to April 2021. This means the annual inflation may have reached 2.6%.
«Inflation remains strong. Time will tell for how long,» says Gašpuitis, adding that inflation has yet to reach its peak.
He also says energy prices remain in the lead, adding that price rise is also expected for food, clothes, footwear and services.
«In the coming months, with restrictions coming down, we will be able to determine the effect of the pandemic on prices more clearly,» says Gašpuitis.
The Central Statistical Bureau of Latvia plans to report data on price changes in May around Tuesday, 8 June.https://bnn-news.com/bank-analysts-expect-inflation-in-latvia-to-reach-2-6-2-7-in-may-225573
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