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RIGA, Jan. 11 (Xinhua) -- Consumer prices in Latvia rose by 0.1 percent on average in 2016 against a year before, the national statistics office said on Wednesday.
During the last month of 2016, Latvia's consumer price index climbed 2.2 percent against the same month in 2015, as goods prices rose by 1.7 percent and services became 3.4 percent costlier, according to the statistics office's data.
At the end of 2016, Latvia's inflation rate was pushed up by rising prices of food and non-alcoholic beverages, telecommunication services and health care.
While thermal power, natural gas and solid fuel became less expensive, utility bills for house maintenance, waste collection, sewer and water services rose at the end of last year.
Commenting on consumer price dynamics in 2016, SEB Bank economist Dainis Gaspuitis noted that price changes were minimal last year but inflation was likely to accelerate in 2017 and rise above 2 percent, which is expected to have a positive effect on the economy.
"As for this year's trends, most probably, inflation will be significantly steeper this year. We might see inflation rise above 3 percent already in January."
"Inflation is likely to remain at this level for the first months of the year and then decline somewhat. On the whole, we expect the annual inflation rate to be slightly above 2 percent this year," the SEB Bank economist said.
In his words, inflation will gather pace on rising energy prices. "Services prices will keep climbing and there will also be a moderate increase in food prices," the expert said.
Gaspuitis projected the wage growth will be in the range of 4 to 4.5 percent this year. Enditem
