Fuel prices are displayed at a petrol station in Riga, Latvia, March 9, 2022. A spike in food and energy prices could push Latvia's annual inflation rate up to 10 percent in the coming months, the country's Finance Ministry warned Wednesday. (Photo by Edijs Palens/Xinhua)
RIGA, March 9 (Xinhua) -- A spike in food and energy prices could push Latvia's annual inflation rate up to 10 percent in the coming months, the country's Finance Ministry warned Wednesday.
However, if the price hikes subside in the second half of the year, inflation is also likely to ease, the ministry said.
In February 2022, Latvian consumer prices rose by 8.7 percent compared to the same period a year ago, which is the fastest rate recorded in the Baltic country since March 2009.
"In recent months, the rise of consumer prices has been similar to that seen in 2007-2008, but it is important to underline that the current causes of inflation are related primarily to external factors and not imbalanced economic growth," the Finance Ministry said.
Soaring energy prices on global exchanges have had a direct impact on fuel, electricity and heating prices, which in turn have increased logistics and production costs. These factors have made virtually all goods and services more expensive.
This past February, energy prices increased Latvia's average annual inflation by 2.9 percentage points, while the effect from higher food and beverages prices was 3 percentage points.
Although prices of food and nonalcoholic beverages have not been climbing as steeply as energy prices, their annual increase was 11.8 percent, official figures show. ■
Fuel prices are displayed at a petrol station in Riga, Latvia, March 9, 2022. A spike in food and energy prices could push Latvia's annual inflation rate up to 10 percent in the coming months, the country's Finance Ministry warned Wednesday. (Photo by Edijs Palens/Xinhua)
