Latvian inflation still climbing

RIGA -- Latvia's Central StatisticsOffice has released inflation figures for December 2007.

The country managed to avoid the15% figure that many economists had been speculating about earlier in the year,but by less than one percentage point. The figure of 14.1% was up from 13.7%year-on-year in November. Annual average inflation across the whole Jan-Decperiod was 10%.

According to a Danske Bankanaylsis released soon after the figures were announced, Latvia still has someway to go before inflation reaches its peak.

"The price growth of foodproducts, housing and transport services had the greatest impact on theconsumer price increase in 2007. Due to the rise in excise taxes, tobaccoproducts prices jumped considerably as well... we expect another hike in pricesat the beginning of 2008, mainly due to energy," Danske said.