Analytics, Inflation, Latvia, Markets and Companies

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

Compared to April 2015, the greatest pressure on the price changes in April 2016 was put by the drop in prices of goods and services related to transport, goods and services related to housing, as well as by the rise in prices of alcoholic beverages and tobacco products, health care, hotel and restaurant services, as well as clothing and footwear.

Compared to the corresponding month of the previous year, in April 2016 average level of food and non-alcoholic beverage prices grew by 0.1%. Fresh fruit, dried, salted or smoked meat, potatoes, eggs, and sugar had the most notable influence on the price rise. Whereas reduction was recorded in prices of poultry, coffee, cheese, milk, fresh vegetables, and kefir.

Due to notable increase in prices of beer, wine and cider, as well as spirits, average level of alcoholic beverage prices grew by 3.3%. Prices of tobacco products rose by 5.6%.

During the year, prices of clothing went up by 1.8%, and prices of footwear – by 1.8%.

Commodity group impact on Consumer Price Index during the year (percentage points)

During the year, prices of goods and services related to housing fell by 4.5%. Drop was recorded also in prices of heat energy, natural gas, electricity, while rise was observed in prices of maintenance and repair of the dwelling and maintenance charges in multi-occupied buildings.

Mainly due to the growth in prices of pharmaceutical products, average level of prices in health care increased by 2.5%. Within the health care group, prices in specialist practice went up as well.

Within the transport group, mainly because of the drop in prices of fuels for transport of 13.2%, level of prices declined on average by 5.5%. Passenger transport by air and by train became cheaper, while maintenance and repair of personal transport equipment became more expensive.

Compared to April of the previous year, prices of hotel and restaurant services increased by 2.0%. Prices in cafés and restaurants increased by 2.2%, and in canteens – by 1.8%. During the year, average level of hotel service prices went up by 1.2%.

Among other consumption groups, the most significant drop was recorded in prices of articles for personal hygiene and beauty products, cleaning and maintenance products, as well as package holidays.

During the month, average level of consumer prices increased by 0.4%

Compared to March 2016, in April 2016 average level of consumer prices rose by 0.4%. Prices of goods increased by 0.7%, while prices of services declined by 0.5%.

The greatest pressure on the consumer prices in April was put by the growth in prices of clothing and footwear, food and non-alcoholic beverages, goods and services related to transport, as well as by the drop in prices in recreation and culture and prices of goods and services related to housing.

During the month, prices of food and non-alcoholic beverages rose by 0.6%. Within the food group, increase of 6.2% in prices of fresh vegetables, mainly cucumbers and tomatoes, had the most notable influence on the price changes. Rise was recorded in prices of fresh fruit (incl. apples, bananas, and oranges). Prices of cheese and curd, meat products, as well as dried fruit and nuts went up. Whereas drop was observed in prices of poultry, coffee, bread, and pork.

As goods of the summer season kept entering the market, prices of footwear rose by 17.1% and prices of clothing – by 2.6%.

Reduction was recorded in average level of heat energy prices (of 2.5%) and actual rentals for housing. Whereas prices of water supply and sewage collection went up.

Within the transport group, mainly due to the 3.2% rise in average level of prices of fuels for transport, average level of prices went up by 0.5%. Reduction was observed in prices of passenger transport by air, as well as spare parts and accessories for personal transport equipment.

Within the recreation and culture group, mainly because of the drop in prices of package holidays of 8.4%, average level of prices declined by 1.0%. Garden products and flowers became cheaper. Due to the end of sales campaigns, prices of pet food went up.

Among other consumption groups, increase was recorded in prices of tobacco products, wine and cider. While reduction was observed in prices of articles for personal hygiene and beauty products.

Consumer price changes by commodity group, %

Sub-indices having the greatest impact, percentage points

Information on Consumer Price Index in May 2016 will be published on June 8.

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

^*The annual inflation characterises consumer price changes, comparing the average price level in the reference month with the average price level in the corresponding month of the previous year.