Analytics, Baltic, Inflation, Latvia, Markets and Companies

Prices of goods decreased by 0.9%, while prices of services grew by 3.3%. In 2013 consumer prices declined by 0.4%.

Changes in consumer prices in 2013 and 2014 (% over the corresponding month of the previous year)

Data source: Central Statistical Bureau of Latvia

Compared to December 2013, the greatest pressure on the price changes in December 2014 was put by rise in prices of alcoholic beverages and tobacco, services and goods related to housing, hotel and restaurant services, as well as by drop in prices of transport goods and services, food and non-alcoholic beverages.

Commodity group impact on Consumer Price Index over the last 12 months (percentage points)

Like in December 2013, the average food price level in December 2014 as compared to the corresponding month of the previous year decreased (-0.8%). Milk and dairy products had the most significant lowering impact on the price level. Drop was also observed in prices of vegetables, meat and meat products; in turn, growth was recorded in prices of fish and fish products, tea and coffee, confectionery and honey, cheese, as well as of bread and cereals.

Prices of tobacco rose by 8.7%. The average price level of alcoholic beverages increased by 0.2%.

During the year prices of goods and services related to housing increased by 1.3%. It was caused by the price growth for maintenance charges in multi-occupied buildings, water supply, sewage collection, services for maintenance and repair of the dwelling, actual rentals for housing; in turn, prices of refuse collection witnessed a fall.

In transport group prices declined by 5.2%, which was significantly affected by drop in prices of fuels for transport of 12.3%. Decrease was also recorded in the prices of spare parts and accessories for personal transport equipment. Growth was observed in the prices of maintenance and repair services of personal transport equipment and of passenger transport by sea and air.

Compared to December 2013, prices of hotel and restaurant services increased by 4.4%. Prices in cafés and restaurants increased by 4.6%, in canteens - by 4.5%.

Among other commodity groups the most significant growth was recorded in prices of cultural services, non-durable household goods, clothing, and dental services; in turn drop was recorded in prices of footwear.

Administrated prices in 2014 decreased by 0.1%, while non-regulated prices grew by 0.2%.

Compared to the previous 12 months², the average consumer price level over the last 12 months increased by 0.6%. In 2013 the average consumer price level during the 12 months did not change.

The average consumer price level in the Baltic States tend to change similarly, showing a distinct downward tendency since the beginning of 2012. However, in 2014 Latvia in contrast to the other Baltic States witnessed an increase.

Consumer Price Index in Latvia, Lithuania and Estonia, 2009 – 2014 (on average during 12 months, over the previous 12 months)

Data source: Central Statistical Bureau of Latvia, Statistics Lithuania, Statistics Estonia

Compared to the previous month, consumer prices in December 2014 decreased by 0.6%. Prices of goods decreased by 1.0%, while prices of services rose by 0.3%.

The greatest pressure on the consumer prices in December was put by drop in prices of transport goods and services, clothing and footwear, alcoholic beverages and tobacco, goods and services related to housing.

Compared to November 2014, prices of food declined by 0.1%, which was affected by seasonal drop in prices of fruit (-2.4%), and vegetables (-1.5%); also prices of soft drinks, tea and coffee decreased. Drop was recorded in prices of sugar, confectionery and honey. Compared to November growth was recorded in prices of milk and dairy products, meat and meat products, as well as of fish and fish products.

Prices of alcoholic beverages declined by 1.1%, which was affected by discounts for beer and spirits. Prices of wine grew by 1.2%. Tobacco prices decreased by 0.4%.

Affected by seasonal discounts and sales, prices of footwear dropped by 7.2% and prices of clothing - by 1.8%.

Due to decrease in natural gas sale prices, heat energy tariffs in December declined by 1.1%. Decrease was recorded in prices of services for maintenance and repair of the dwelling, materials for the maintenance and repair of the dwelling. Actual rentals for housing increased.

Price drop of 6.5% for fuels for transport had the most significant effect on the price level in transport group. Passenger transport by sea and passenger transport by air became more expensive.

The most notable drop among other consumption groups was recorded in the prices of individual care goods. Prices of package holidays increased.

Consumer price changes by commodity group, %

Information on Consumer Price Index in January 2015 will be published on February 11.

More detailed information on consumer price changes is available in the CSB database section Consumer prices.

¹ The annual measure of inflation. The annual measure of inflation that is used to compare the average monthly price level with the average price level in the corresponding month of the previous year.
² The average annual measure of inflation. The average annual measure of inflation that is used to compare the average price level of the last 12 months with the average price level in 12 months of the previous year.