RIGA, July 8, 2024 – In a surprising turn of events, Latvia's Consumer Price Index (CPI) has experienced a negative shift. In June 2024, the CPI dropped to -0.10%, a stark contrast to the 0.30% increase recorded in May 2024, according to the latest data released today.
The month-over-month comparison highlights a significant economic change, indicating potential deflationary pressures in the Latvian economy. This decline suggests that consumers could be benefitting from lower prices, but it may also raise concerns about reduced consumer spending and economic growth.
Local economists are closely monitoring these developments, as sustained deflation can lead to decreased revenue for businesses and potential economic stagnation. The government and policymakers may need to consider strategic interventions to stabilize the economy and ensure a balanced inflation rate.
