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Inflation in Latvia

The rapid growth of income, the available cheap credits of commercial banks, partially the increased popularity of crediting before the factual joining the EU - stimulated the expenditures. In can be identified especially well in April, when current balance reached its lowest level, because the largest parts of products were imported. Because of the increasing demand and the increase of the energy resources cost the 2004 was characterized by the high level of inflation. In case we will use the level of prices as the etalon of inflation, then in comparison with the corresponding period of the previous year it increased from 4% at the beginning of the year till more than 7% at the end of the year. The prices of producers also increase for in average 7%-8% per year.

Inflation influences various social layers differently - despite the high inflation rate the levels of live of richer people increased, but that of poorer - decreased.