Latvia Stability Programme Report

EU-27: 5.9% INFLATION INCREASE DUE TO RISE OF WORLD ENERGY AND FOOD PRICES The main impact on price developments will continue to be related to rising world prices for energy and food, which will be largely affected by geopolitical tensions in the region Inflation (HICP, annual rate of change %, for food and energy - contribution to changes, as percentage points) Harmonised Index of Consumer Prices (June 2022, 12 months average %) 42086420864202 24 22 18 16 14 12 10 2227LETE 13.8% 11.8% 9.8% 9.1% 7.8% 5.8% 3.8% 1.8% -0.2% May-22 Jul-22 Jan- Mar-22 Sep-2 Nov-21 May-18 Jul-18 -ΛΟΝ Sep-18 Nov-18 Jan-19 Mar-19 May-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 Sep-20 Nov-20 Jan-21 Mar-21 May-21 Jul-21 May-15 May-16 Jul-16 Sep-16 Nov-16 Jan-17 Mar-17 May-17 Jul-17 Sep-17 Nov-1 Jan-18 Mar-18 Energy Food, alcohol, tobacco Inflation Inflation excl. energy, food, alcohol, tobacco Source: Eurostat (15.08.2022.) July - estimation Mar-16 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Inflation in Latvia (HICP, %) 3.2 2.92.83.0 2.3 2.62.3 2.72.72.8 1.8 0.2 Belgium Slovakia Ireland Slovenia Austria Finland France EU-27: 6.5% Source: Eurostat (15.08.2022.) Harmonised Index of Consumer Prices Projection (2022-2023, %) 12.0% 10.8% 10.0% 3.6 3.2 8.0% 2.0 6.0% 4.0% 2.0% 0.0% 1.3 0.1 - 0.7 - 0.6 - 0.5 2015 2016 Total inflation 2017 2018 2019 2020 2021 Goods inflation Services inflation 0.1 Source: Eurostat (20.01.2022.) 12 Estonia Latvia Slovakia Slovenia Belgium Austria Ireland Source: European Commission, Summer 2022 (15.08.2022.) Lithuania France Finland

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