In his opinion, the inflation situation, which currently stands at 16.5% in Latvia, will begin to improve in 2010, and will fully correct only by 2012, when its rate will not exceed 3%. According to RIA Novosti, the rise in fuel and heating prices this year has become one of the most intense sources of inflation. It is high inflation that prevents Latvia from introducing the single European currency, the euro, as its main means of payment.
As is known, to introduce the euro, the inflation rate in a country must not exceed 3%. This benchmark is set by the so-called "Maastricht criteria", which a country must meet to adopt the euro as its main currency.
Initially, it was planned that Latvia would join the eurozone in 2008. But already in 2006 it became clear that the planned deadlines would not be met. Inflation in Latvia in 2005 was 6.9%. And despite the fact that a significant slowdown in inflation was expected by the planned date, Latvia still "does not meet EU standards," said then EU Commissioner for Economic and Monetary Affairs Joaquín Almunia.