Analytics, EU – Baltic States, Inflation

The IMF predicts overall deflation for five other countries this year – 2% in Ireland, 1.4% in Japan, 1.2% in Lithuania, 0.6% in Montenegro, and 0.2% in Samoa.

Meanwhile, the highest inflation is expected for Venezuela – 29.7%, the Democratic Republic of the Congo – 26.2%, and Eritrea – 20.5%.

The average inflation rate for the U.S. this year will be 2.1%, and for the eurozone – 1.1%, lagging behind the target rate set by the European Central Bank, which is a little under 2%.

According to IMF's forecasts, Latvia's average deflation rate will drop to 2.5% in 2011, and prices will begin to rise again in 2012.

Consumer prices in Estonia will increase by 0.8% this year, by 1.1% in 2011, and by 1.3% in 2012. Meanwhile, Lithuania is expected to see a drop in prices of 1.2% this year, followed by a drop of 1.1% in 2012, and a rise of 0.1% in 2012.

The IMF's new biannual report predicts a drop of 4% in Latvia's gross domestic product this year, which is the same as that predicted in the previous report in October last year.

Only earthquake-struck Haiti is predicted to see a higher drop in GDP, where it could reach 8.2%.