Riga - There was mixed news on the Latvian economy Monday with official statistics recording a month-on-month rise in the consumer price index (CPI) inflation figures but a continuing downward trend year-on-year.

The Latvian Central Statistical Bureau said that compared to September 2008 inflation for October 2008 rose by 1.2 per cent to stand at 13.8 per cent year-on-year.

In September, Latvian annual inflation was 14.9 percent.

Riga - With sales of new cars in Latvia shrinking by more than a third in the first ten months of 2008 according to figures released Monday, it was left to carmakers at opposite ends of the price spectrum to report the strongest results.

Total sales of new cars in the Baltic country for January to October dropped to 10,434 from 17,239 in the same period last year, according to the Latvian Authorized Car Dealers Association.

With an economic downturn well underway, Latvians appear to be weaning themselves off their hitherto insatiable appetite for the latest automotive metal and are making do with older models and cheaper new cars.

In October, just 1,183 new cars were registered, the lowest monthly figure of the year.

Riga - Latvia's largest

Riga - Latvia's largest indigenous bank, Parex Banka, confirmed that it was seeking government help in what amounts to a partial nationalization in a surprise move on Sunday morning.

Parex Banka is the second largest bank overall in the Baltic country. It posted profits of more than 12 million lats (22 million dollars) in the first nine months of 2008.

A statement released by Parex in the early hours of Sunday morning said, "In accordance with the terms of the agreement between the bank and the Latvian state, 51 per cent of Parex Banka's shares are being sold to the state."

Riga - The three Baltic stock exchanges registered small losses overall Friday, with a dip in a high-profile Estonian stock dragging the rest of the region down.

The NASDAQ OMX Tallinn exchange in Estonia was down 2.68 per cent, and the Vilnius exchange in Lithuania was almost unchanged, down just 0.63 per cent, while the Riga exchange in Latvia actually rose by 1.30 per cent on thin trading.

Riga - Latvia's economy shrank by 4.2 per cent in the third quarter, the government said Friday, while a downgraded credit rating added to the Baltic country's woes.

Fears about the future of the three Baltic economies grew as the flash estimate showed Latvia's gross domestic product (GDP) falling more than analysts had expected. Second-quarter growth in 2008 was 0.1 per cent.