Latvian September Inflation Rate Increases to 11.4%

Oct 8, 2007 - Latvia's annual inflation rate rose to a 10-year high of 11.4 percent in September, led by food and tobacco, pushing the nation further from euro adoption.

The annual inflation rate, the European Union's second highest, rose from 10.1 percent in August, the fourth consecutive gain, the statistical office reported in the capital Riga. In the month, consumer prices rose 1.9 percent. The annual figure exceeded the 10.7 percent median estimate of four economists.

Inflation in the EU's fastest-growing economy is picking up at more than five times the pace of the 13 nations sharing the euro. The government was forced to abandon its 2008 target date for adopting the euro as economic growth pushed consumer prices beyond targets required for the currency switch.

"The trend is quite shocking," said Zigurds Vaikulis, an economist at Parex Asset Management. "We are seeing an inflation spiral. If you add increases in heating and water prices, then inflation could surpass 13 percent next month," Vaikulis said.

The cost of food rose 14.8 percent in the year, alcohol and tobacco prices grew an annual 18.5 percent and restaurants and hotels were 20.1 percent more expensive than a year ago, the statistics office said. Housing, water, electricity and gas expenses grew 16.7 percent on the year.

Euro adoption is limited to countries that meet targets on inflation, budget deficits, debt, interest rates and currency stability. Inflation must be within 1.5 percentage points of the 12-month average rate of the three EU nations with the slowest consumer price growth.

Bulgaria's annual inflation rate was 12 percent in August, the EU's highest.

Latvian 12-month inflation rises to 10.1 percent August

Sep 10, 2007 - Consumer prices grew by 0.4 percent in new European Union member Latvia in August compared to July, putting 12-month inflation at 10.1 percent, the national department of statistics said.

Average 12-month inflation, which is one of the key indicators for countries wishing to join the eurozone, was 7.8 percent in August.

Latvia is having difficulty keeping inflation under control in the face of spiralling economic growth as it catches up with older members of the European Union, which it joined in 2004.

The Latvian economy grew by 11.9 percent last year, the fastest rate since independence from the Soviet Union in 1991 and the strongest growth rate in the then 25-member EU.

Latvia GDP provisional growth in Q2 reaches 11.3 pct

Aug 9, 2007 - Latvia's gross domestic product grew 11.3 pct in the second quarter of 2007 compared to the same period a year ago, Latvian central statistics provisional assessment data shows.

In the second quarter of 2006, Latvia's GDP grew by 11.1 pct from the same period of 2005, while the total economy expansion last year reached 11.9%.

In the first quarter of 2007 Latvia's GDP increased by 11.2%.

The office said that more detailed data on the GDP growth in the first half and second quarter of 2007 will be published in a press release on Sept 7.

Latvia GDP up 11.9 pct in 2006

Mar 9, 2007 - Latvia's GDP grew by 11.9 pct in 2006 from 2005, the national statistics office said.

This was a record for annual economic growth since the Baltic republic regained its independence from Moscow in 1991.

Last year's growth rate puts Latvia at the top of the 27 members of the enlarged European Union, which it joined in 2004.

In the fourth quarter of 2006, Latvia's GDP grew 11.7 pct from a year earlier, according the latest figures.

In 2005, GDP grew by 10.2 pct.