Riga, June 10 (LETA) - The Bank of Latvia has increased its annual average inflation forecast for this year to 3.4 percent from 1.4 percent, Uldis Rutkaste, Head of the Monetary Policy Department of the Bank of Latvia, said at a discussion organized by the Bank of Latvia on Tuesday.

In turn, the annual average inflation forecast for 2026 has been increased to 2.1 percent from 1.5 percent as in forecast last December, while the annual average inflation forecast for 2027 has been raised to 2.8 percent from 2.1 percent.

The Bank of Latvia said that the increase in the inflation forecast for 2025 to 3.4 percent was due to a faster-than-previously-predicted increase in food and services prices.