As unemployment continues to rise, prices are starting to come down in Latvia. In Rimi the cost of a litre of milk dropped five santimes last week. Deflation is forecast by the end of the year.
None of which helps teachers, who face a twenty per cent pay cut following the new government's decision to chop 66 million euros from the education budget. Seven schools will be closed and a further twenty-two "restructured" ahead of the next academic year. "I think that students will not lose from that...the network of school will become optimal enough...Both teachers and students will benefit from that," said Education Minister Tatjana Koke.