Recovery of Latvian economy under way as inflation returns in July

Source: Xinhua| 2020-08-10 22:33:57|Editor: huaxia

RIGA, Aug. 10 (Xinhua) -- After two months of deflation, Latvian consumer prices rose again in July, signalling the start of an economic recovery in the wake of the coronavirus crisis.

According to the latest data released on Monday by the national statistics office, Latvia saw a 0.5 percent annual inflation in July, while compared with June this year, consumer prices climbed 0.2 percent in July.

The rising inflation is another indication of a relatively fast recovery of the Latvian and global economy from the COVID-19 shock, said Martins Abolins, an economist at Latvia' Citadele Bank.

He also projected Latvia's economic downturn this year to be less severe than earlier expected.

"There will certainly be no deflation in Latvia this year, and the annual inflation rate is likely to surpass 0.5 percent," the expert said, predicting that next year Latvia's annual inflation might rise above 2 percent.

However, the further dynamic of the economic recovery and consumer prices will largely depend on the spread of the COVID-19 not only in Latvia but in the world in general, the Citadele economist concluded. Enditem