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Andris Vilks predicts pay raise and 2-2.5% inflation in Latvia

Staff writer |
Inflation in Latvia will be 2% to 2.5% in the coming years, Finance Minister Andris Vilks said during a meeting with EU journalists, reports LETA.

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This is a good figure for Latvia and the Baltic States, since such a level of inflation is natural. The introduction of the euro in Latvia will not serve as a basis for price increases, emphasized the minister.

The unusual situation in the country - 4% to 5% growth and the average inflation basically at 0% is due to Latvia exiting a deep recession, people spending cautiously and companies making cautious investments. At the same time, stable or falling energy prices, as well as low oil prices, do not stimulate inflation.

According to the minister, salaries will continue to grow. At the moment, salaries are growing 4% to 5% and there is a potential for a pay raise in Latvia's economy, explained Vilks.

As reported, the average gross salary in Latvia is expected at around EUR 751 this year, the Finance Ministry said previously. The average salary in 2013 is believed to have reached EUR 714. In 2012, the average gross salary in Latvia was at EUR 684, in 2011 - EUR 660, but in 2010 - EUR 633.

Latvia's credit ratings will be raised in the coming months, Finance Minister said.

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