Analytics, Inflation, Latvia, Markets and Companies

Compared to the previous 12 months, the average consumer price level over the last 12 months² increased by 0.5%.

Changes in consumer prices in 2014 and 2015 (% over the corresponding month of the previous year)

Data source: Central Statistical Bureau of Latvia

The greatest pressure on the average level of consumer prices in April 2015, as compared to April 2014, was put by increase in prices of goods and services related to housing, hotel and restaurant services, alcoholic beverages and tobacco, health care, as well as by drop in prices of transport goods and services, food and non-alcoholic beverages.

The average food price level in April 2015, as compared to the corresponding month of the previous year, decreased by 1.5%. Milk, cheese and eggs had the most significant lowering impact on the price level. Drop was also observed in prices of meat and meat products, potatoes, sugar, oils and fats, juices and soft drinks. In turn, prices of vegetables, tea and coffee, confectionery and honey witnessed growth.

Prices of tobacco rose by 5.1%. The average price level of alcoholic beverages decreased by 0.5%, which was affected by drop in prices of wine. In turn, spirits became more expensive.

During the year prices of goods and services related to housing increased by 5.2%. Growth was recorded in prices of electricity, water supply, sewage collection, maintenance charges in multi-occupied buildings; in turn, prices of heat energy witnessed drop.

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

During the year the average health care price level increased by 2.1%. Growth was observed in prices of pharmaceutical products, dental services, consultations at specialist practice. Drop was recorded in prices of hospital services.

In transport group the average price level declined by 4.0%, which was significantly affected by drop in prices of fuels for transport of 13.0%. Decrease was also observed in prices of spare parts and accessories for personal transport equipment, passenger transport by air. Increase was recorded in prices of services of passenger transport by railway and road, as well as of maintenance and repair services of personal transport equipment. Fee for parking increased.

Compared to April 2014, prices of restaurant and hotel services increased by 3.3%. Prices in cafés and restaurants grew by 3.9%, and in canteens – by 3.1%. During the year the average price level of hotel services decreased by 2.9%.

Among other consumption groups, the most significant increase was recorded in prices of cultural services, services of hairdressing salons and personal grooming establishments. In turn, drop was recorded in prices of package holidays.

Compared to the previous month, consumer prices in April 2015 grew by 0.6%. Prices of goods increased by 0.7%, and prices of services – by 0.2%.

The greatest pressure on consumer prices in April was put by growth in prices of clothing and footwear, food and non-alcoholic beverages, alcoholic beverages and tobacco, health care and transport goods and services.

Prices of food grew by 0.7%. Affected by seasonal factors, prices of vegetables witnessed growth (+8.0%). Increase was mainly recorded in prices of tomatoes, sweet peppers, carrots and fresh cabbage. In turn, cucumbers became cheaper. Increase was observed in prices of fruit, oils and fats, fish and fish products, milk and dairy products. In turn, drop was recorded in prices of eggs, cheese, juices and soft drinks, bread and cereals, sugar, confectionery and honey.

In April alcoholic beverages became more expensive (+1.1%), which was affected by the end of discounts on spirits and beer. 

With the spring – summer season goods entering the market, prices of footwear grew by 16.2%. Prices of clothing grew by 0.2%.

Prices of pharmaceutical products increased by 0.3% and prices of dental services – by 1.2%.

In transport group the average price level grew by 0.3%, which was affected by growth in prices of maintenance and repair services of personal transport equipment. Prices of fuels for transport grew by 0.3%. Increase was observed in prices of parking services, which was affected by growth of parking fees in Riga. Prices of spare parts and accessories for personal transport equipment decreased by 3.4%.

The most notable growth among other consumption groups was recorded in prices of food for pets, books and individual care goods. In turn, prices of package holidays and non-durable household goods declined.

Consumer price changes by commodity group, %

Sub-indices having the greatest impact, percentage points

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.