RIGA — Latvia’s deflationary spiral reversed course in March thanks to higher prices for fuel and clothing, the statistics bureau reported Monday.

Compared with March 2009, consumer prices in Latvia have fallen 3.9 percent, which is lower than the annual 4.5 percent registered in February and lower than many analysts’ forecasts. Monthly inflation was 0.5 percent, the first significant month-on-month increase in consumer prices since February 2009.

All three Baltic states witnessed an inflationary uptick in March thanks to higher prices for goods. In Latvia, clothes and footwear were 3.9 percent more expensive in March than in February. Food prices were up 0.8 percent for the month.

Overall, Latvia is still in deflationary territory, but it would appear that the steepest part of the curve has passed and now prices will eventually begin to climb as the country’s slowly begins to recover from its worst recession on record.

Most economists are predicting that prices this year will fall as consumer demand remains weak.

The government is hoping that the deflation, fueled by decreased wages and less budget spending, will help Latvia restore its competitiveness.