Economists Forecast Slight Decline in Annual Inflation in Latvia for June
Economists predict that Latvia's annual inflation fell to 3.3–3.4% in June, down from 3.5% in May.
Bank analysts forecast that annual inflation in Latvia decreased to 3.3–3.4% in June, compared to 3.5% in May.
Swedbank economist Oskars Niks Mālnieks noted that the average consumer price level in June remained unchanged from May, but annual inflation compared to June last year is likely around 3.4%. He explained that fuel prices continued to drop in June, falling by 6.7%.
Citadele chief economist Kārlis Purgailis predicted that monthly inflation in June was near zero, resulting in annual inflation of 3.3% – 0.2 percentage points lower than in May. He attributed the stabilization mainly to falling energy prices following the de-escalation of the conflict in the Middle East. However, Purgailis expects a slight acceleration in inflation in the coming months, especially in the services sector, due to delayed effects of the energy price shock earlier this spring.
Luminor Bank economist Pēteris Strautiņš forecasts that month-on-month prices decreased by 0.1%, while year-on-year they increased by 3.3%. He noted that for the third consecutive month, monthly inflation has been close to the typical level for this time of year, even slightly below. The only exception since mid-last year was March this year, which caused the current annual inflation to be slightly elevated.
