Analytics, Economics, Latvia, Statistics

Latest data of the Central Statistical Bureau (CSB) show that, during the year* (in June 2016, compared to June 2015) the average level of consumer prices decreased by 0.5%. Prices of goods decreased by 1.2%, while prices of services grew by 1.2%.

Changes in consumer prices

(% over the corresponding month of the previous year)

Compared to June 2015, in June 2016 the greatest pressure on the average level of consumer prices was exerted 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 the prices of alcoholic beverages and tobacco products, health care, clothing and footwear, and restaurant and hotel services.

Compared to the corresponding month of the previous year, in June 2016 the average level of food and non-alcoholic beverage prices increased by 0.2%. The most significant impact on the price rise was provided by the prices of potatoes, sugar, poultry, fresh or chilled fish, bread, as well as flours and other cereals, while prices of fresh vegetables, milk, cheese and curd, fresh fruit, coffee, butter, and yoghurt went down.

The average price level of alcoholic beverages grew by 4.9%, which was affected by an increase in the prices of beer, spirits, and wine. Prices of tobacco products increased by 4.8%.

Prices of garments increased by 2.1%, whereas of footwear – by 2.9%.

During the year, prices of goods and services related to housing decreased by 4.8%. A reduction was recorded in the prices of heat energy, natural gas, electricity, and rentals for housing, whereas an increase was observed in the prices of refuse collection, services for the maintenance and repair of dwellings, as well as maintenance charges in multi-occupied buildings.

The average level of health care prices rose by 2.1%, which was mainly due to the increase in prices of pharmaceutical products. Price growth was also recorded in medical specialist practices and dental services.

Within the transport group, mainly because of a drop of 11.2% in the prices of fuels for transport, the average level of prices declined by 4.6%. Passenger transport by air became cheaper, while maintenance and repair of personal transport equipment became more expensive.

Compared to June of the previous year, prices of restaurant and hotel services increased by 1.6%. Prices of catering services grew by 2.0%. During the year, the average price level of hotel services dropped by 6.4%.

Among other consumption groups, the most notable drop was recorded in the prices of internet access services, cultural services, and pet food, whereas an increase was observed in prices of package holidays and books.

During the month, the average level of consumer prices remained unchanged

Compared to May 2016, in June 2016 the average level of consumer prices remained unchanged. Prices of goods decreased by 0.2%, whereas prices of services rose by 0.6%.

In June, the greatest pressure on the consumer price level was exerted by the growth in prices of goods and services related to transport, goods and services within the miscellaneous goods and services group, and recreation and culture, as well as by the drop in prices of food and non-alcoholic beverages, clothing and footwear, and goods and services related to housing.

During the month, prices of food and non-alcoholic beverages decreased by 0.9%. Within the food group, a drop in prices of fresh vegetables, mainly cucumbers and tomatoes, had the most notable influence on the changes of the price level. There was also a decrease in the prices of fresh fruits, cheese and curd, bakery products, yoghurt, milk, and meat preparations. Whereas growth was recorded in the prices of potatoes, bread, and fresh or chilled fish.

Affected by discounts, the prices of footwear dropped by 3.6% and of garments – by 0.9%.

A decline was recorded in the average price level of heat energy (of 1.1 %) and materials for the maintenance and repair of dwellings.

Within the transport group, the average level of prices grew by 2.0%, which was mainly due to the 4.0% increase in the prices of fuels for transport. Passenger transport by air and passenger transport by sea became more expensive, whereas a price decrease was observed in the maintenance and repair of personal transport equipment.

Within the recreation and culture group, the average level of prices grew by 0.7%, which was mainly affected by the 12.2% increase in the prices of package holidays.

Affected by the end of sales, the average level of prices of articles for personal hygiene and beauty products increased by 2.4% during the month.

Among other consumption groups, an increase was recorded in the prices of wine, as well as restaurant, cafe and fast food services, whereas a drop was recorded in the prices of spirits and non-durable household goods.