In Latvia, consumer prices in May this year may have increased by 0.5–0.6% compared to April, thus during the year – in May this year compared to May 2020 – inflation could have reached 2.6–2.7%, bank analysts predict .
Swedbank Economist Laura Orleāne predicted that in May, compared to April, consumer prices could have risen by 0.6%, with inflation reaching 2.7% during the year.
“In May 2021, a sharp rise in inflation will continue,” said Orleans.
She noted that the average price level in May was mostly driven up by clothing and footwear prices, as in April, reflecting the population’s “thirst” for face-to-face sales and reopening of stores.
Rising food and fuel prices also played an important role in the rise in prices.
Orleans also pointed out that changes in consumer prices during the year are influenced by the sharp fall in the price level observed last spring.
In turn SEB bank macroeconomic expert Dainis Gašpuitis predicted that consumer prices in May could have increased by 0.5% month-on-month, bringing inflation to 2.6% over the year.
“Inflation continues to strengthen very convincingly. Time will tell how sustainable it will be, “said Gašpuitis, adding that the highest point of annual inflation is still ahead.
He also noted that the rise in energy prices is still in the forefront, but also for food, clothing and footwear, as well as services.
“In the coming months, as restrictions shrink, we will be able to more clearly assess the impact of the pandemic on prices,” Gašpuitis noted.
The Central Statistical Bureau will announce data on consumer price changes in May on Tuesday, June 8.
It has already been reported that consumer prices in Latvia in April this year increased by 0.9% compared to March, but during the year – in April this year compared to April 2020 – consumer prices increased by 1.7%. At the same time, the 12-month average consumer price level decreased by 0.2% in April compared to the previous 12 months.
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