06 November 2009

LATVIA: Deflation May Hit Economy.

BLOOMBERG/
The government is betting that by forcing down wages, lower consumer demand will curb inflation and bring it back in line with the euro countries.
Latvia’s inflation rate might actually be 1% deflation in October. It would be the first annual deflation since the country split from the Soviet Union in 1991. It had an inflation rate of 17.9 percent in May 2008.