Analytics, Inflation, Latvia, Markets and Companies

Prices of goods decreased by 0.4%, while prices of services rose by 3.3%. Compared to the previous 12 months, the average consumer price level over the last 12 months², grew by 0.5%.

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

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

The average food price level in June 2015 as compared to the corresponding month of the previous year decreased by 1.6%. Decline of 8.8% in prices of milk, cheese and eggs had the most significant lowering impact on the price level. Drop was also recorded in prices of meat and meat products, sugar, oils and fats, bread; also potatoes became cheaper during the year. In turn, growth was observed in prices of tea and coffee, fruit, vegetables, confectionery and honey.

During the year prices of goods and services related to housing increased by 4.8%. 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.

In transport group the average price level declined by 2.9%, which was significantly affected by drop of 10.2% in prices of fuels for transport. Increase was observed in prices of services of passenger transport by railway and road, of maintenance and repair services of personal transport equipment, of parking services.

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

In recreation and culture group prices on average grew by 2.1%, which was affected by growth in prices of cultural services, garden products and flowers. Prices of package holidays witnessed drop.

Compared to June 2014, prices of hotel and restaurant services increased by 3.2%. Prices in cafés and restaurants grew by 3.8%, and in canteens – by 2.7%. During the year the average price level of hotel services decreased by 1.1%.

Among other consumption groups, the most significant growth was recorded in prices of telecommunication services, tobacco. In turn, decline was observed in prices of beer.

As compared to the previous month, consumer prices in June 2015 decreased by 0.2%. Prices of goods declined by 0.6%, while prices of services grew by 0.7%.

The greatest pressure on the consumer price changes in June was put by drop in prices of food and non-alcoholic beverages, clothing and footwear, goods and services related to housing, as well as by increase in prices of transport goods and services, communication services.

Prices of food decreased by 1.3%. Affected by seasonal factors, prices of vegetables witnessed drop of 15.4%, which was mainly affected by decrease in prices of tomatoes, cucumbers and sweet peppers. Decline was recorded in prices of fresh meat, sugar, coffee. In turn, growth was observed in prices of sausages and smoked meat, fruit, eggs, milk and dairy products. Potatoes also became more expensive.

Affected by discounts, prices of clothing decreased by 2.8%, of footwear – by 2.9%.

Due to decrease in natural gas sale prices, heat energy in June became cheaper on average by 2.3%. Decline was also recorded in prices of solid fuel.

In transport group the average price level rose by 0.9%, which was mainly affected by growth in prices of fuels for transport of 1.5%. Public transport services became more expensive, which was affected by changes in tariffs for the services of passenger transport by railway and road in Liepāja that took effect on June 1. Passenger transport by sea and passenger transport by air became more expensive.

Prices of communication services increased by 2.0%, which was mostly affected by growth in prices of wired telephone services.

Among other consumption groups, the most significant drop was recorded in prices of books, TV, audio and video equipment, wine. In turn, growth was observed in prices of package holidays and tobacco.

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.

¹The 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.
²The 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.