Inflation is defined as a situation  BIS central bankers’ speeches  1  in which the CPI persistently rises; on the contrary, deflation is defined as a situation in which the CPI keeps falling. A price rise or fall of individual items such as vegetables and television sets does not constitute either inflation or deflation.
Then, at the beginning of 2008, the introduction of the euro will begin. Let us explore each stage in more detail. First - about the first stage that is only a couple of months away. That is - about the change of the lats’ peg and the chosen exchange rate level between the lats and the euro.