Analytics, Inflation, Latvia, Markets and Companies

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

Compared to May 2015, in May 2016 the greatest pressure on the average level of consumer prices was put by the decrease in prices of goods and services related to housing, goods and services related to transport, as well as by the increase in prices of alcoholic beverages and tobacco products, health care, restaurant and hotel services and prices in communication group.

Compared to the corresponding month of the previous year, in May 2016 average level of food and non-alcoholic beverage prices fell by 0.2%. Decline in prices of fresh vegetables, coffee, milk, cheese, butter, and poultry had the most significant lowering impact on the price level. While prices of fresh fruit, sugar, bakery products, chocolate, dried, salted or smoked meat, and potatoes went up.

Mainly due to the rise in prices of beer, spirits, and wine, average level of alcoholic beverage prices grew by 5.5%. Prices of tobacco products increased by 6.3%.

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

During the year, prices of goods and services related to housing decreased by 5.1%. Reduction was recorded in prices of heat energy, natural gas, electricity, and solid fuels, whereas increase was observed in prices of refuse collection, as well as services for the maintenance and repair of the dwelling.

Mainly due to the increase in prices of pharmaceutical products, average level of health care prices rose by 2.4%. Price growth was recorded in medical specialist practice and dental services.

Within the transport group, mainly because of the drop of 13.4% in prices of fuels for transport, level of prices declined on average by 5.6%.  Passenger transport by air became cheaper, while maintenance and repair of personal transport equipment became more expensive.

Within the communication group, mainly due to the rise in telecommunication service prices, level of prices rose on average by 2.7%.

Compared to May of the previous year, prices of restaurant and hotel services increased by 1.6%. Prices of restaurant, café and fast food services grew by 1.9% and prices of canteen services – by 1.6%. During the year, average level of hotel service prices fell by 2.7%.

Among other consumption groups, the most notable drop was recorded in prices of articles for personal hygiene and beauty products, cultural services. Whereas increase was observed in prices of footwear.

During the month, average level of consumer prices increased by 0.6%

Compared to April 2016, in May 2016 average level of consumer prices rose by 0.6%. Prices of goods increased by 0.5%, and prices of services – by 0.8%.

In May, the greatest pressure on the consumer price level was put by the growth in prices of food and non-alcoholic beverages, goods and services related to transport, clothing and footwear, alcoholic beverages and tobacco products, and prices in communication group, as well as by the drop in prices of goods and services related to housing.

During the month, prices of food and non-alcoholic beverages rose by 0.7%. Within the food group, increase in prices of fresh fruit, bakery products, dried, salted or smoked meat, sugar, chocolate, poultry, and cheese had the most notable influence on the changes of price level. Whereas decline was recorded in prices of fresh vegetables, butter, and fresh or chilled fish.

Affected by the end of beer and spirit sales, average level of alcoholic beverage prices increased by 0.8%. Prices of tobacco products went up by 0.6%.

Prices of clothing rose by 1.1% and of footwear – by 2.1%.

Decline was recorded in average level of heat energy (of 2.4%) and solid fuel prices. Refuse collection became more expensive.

Within the transport group, mainly because of the increase of 1.8% in prices of fuels for transport, average level of prices grew by 0.9%. Passenger transport by air became more expensive.

Mainly due to the increase in prices of wired telephone services, average level of telecommunication service prices rose by 2.8%.

Among other consumption groups, increase was recorded in prices of package holidays, as well as cleaning and maintenance products. Whereas reduction was observed in average level of book prices.

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.

* 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.