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Sunday, September 25, 2022

Bank of Latvia raises inflation forecast for this year to 16.9%

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Photograph: Zane Biter/LETA

Uldis Rutkaste, Head of the Monetary Policy Department at the Bank of Latvia, said on Friday that the Central Bank of Latvia raised its annual average inflation forecast for 2022 to 16.9% in June from the previously estimated 14.8%. macroeconomic forecasts.

Inflation forecast for next year was raised to 9.2% from 7% predicted in June.

At the same time, the annual average inflation forecast for 2024 was raised to 3.4% from the 2.4% forecast in June.

Rutkaste explained that the inflation forecast for the entire forecast period has been raised, largely due to increases in energy, especially gas and food prices, as well as the prospect that these prices will be higher than previously estimated in the future.

Rutkaste added that the forecasts were developed in conditions of high uncertainty caused by the unpredictable course of the war initiated by Russia and, accordingly, the development of global prices, especially in the field of energy prices.

In Latvia in August this year consumer prices were reported to have increased by 0.4% compared to July, but throughout the year – in August this year compared to August 2021 – consumer prices increased by 21.5%, as a month ago. .

At the same time, 12-month average consumer prices increased by 12.3% in August compared to the previous 12 months.

Source: Tv Net

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