OREANDA-NEWS. July 16, 2008. Annual inflation in Latvia in June decreased 0.2 percentage points, reaching 17.5 percent, and it remains the highest in the European Union (EU), according to the EU statistical office "Eurostat" data.

According to the Latvian Central Statistical Bureau's data, calculated using a different methodology, annual inflation in June was 17,7 percent in Latvia.

For three years already, with brief interruptions, Latvia has been registering the highest inflation in the EU. Approximately a year ago, for a short period of time Hungary moved forth as the country with the highest inflation, but in the last few months Bulgaria has drawn nearer to Latvia, with 14.7 percent inflation in June, according to "Eurostat" data.

The inflation level has grown also in Lithuania and Estonia, reaching 12,7 percent and 11,5 percent respectively in June. On the list of countries with the highest inflation figures, Romania follows with 8,7 percent, Slovenia - with 6,8 percent, Czech Republic - with 6,6 percent, and Hungary - with 6,6 percent. The lowest inflation rates were registered in the Netherlands – 2,3 percent, Portugal – 3,4 percent and Germany – 3,4 percent.

Compared to May, annual inflation increased in 21 EU countries, decreased in three and remained unchanged in two.

Average annual inflation in all the 27 EU member states was 4,3 percent in June, compared to 4 percent in May. A year ago, average annual inflation in the EU was 2,1 percent. The annual inflation in Euro-zone was 4 percent in June, comparing with 3,7 percent in May. A year ago, average annual inflation was 1,9 percent.

The highest surge in prices in the Euro-zone countries, comparing with June last year, was for food products: 6,4 percent, and transport: 7,1 percent. However, prices for communication services went down by 1,6 percent, and prices for recreation and culture increased only by 0,1 percent.