Analytics, Inflation, Latvia, Statistics

Compared to July 2015, in July 2016 the greatest pressure on the average level of consumer prices was exerted by the increase in prices of alcoholic beverages and tobacco products, food and non-alcoholic beverages, recreation and culture, health care, and prices in the communication group, as well as a drop in the prices of goods and services related to transport and goods and services related to housing.

Compared to the corresponding month of the previous year, in July 2016 the average level of food and non-alcoholic beverage prices increased by 0.9%. The most significant impact on the price rise was provided by the prices of dried, salted or smoked meat, sugar, chocolate, bakery products, pork, salt and spices, ice cream, as well as dried fruit and nuts. In turn, the prices of milk, cheese, fruit and vegetable juices, butter, poultry and fresh vegetables went down.

The average price level of alcoholic beverages grew by 3.9%, which was affected by an increase in the prices of beer, spirits, and wine. Prices of tobacco products increased by 4.5%.

During the year, prices of goods and services related to housing decreased by 2.2%. A drop was recorded in the prices of heat energy, natural gas, electricity, and rentals for housing, whereas an increase was observed in the prices of maintenance charges in multi-occupied buildings, refuse collection, as well as services for the maintenance and repair of dwellings.

The average level of health care prices rose by 2.5%, which was mainly due to the increase in prices of pharmaceutical products. During the year, price growth was also recorded in medical specialist practices and dental services.

The level of prices within the transport group declined by 4.7% on average mainly due to a drop of 12.0% in the prices of fuels for transport. Passenger transport by air became cheaper, while maintenance and repair of personal transport equipment and passenger transport by road became more expensive.

The level of prices within the communication group rose by 2.6% on average, which was mainly caused by a rise in the prices of wired and wireless telephone services. Internet access services became cheaper.

The prices of package holidays increased by 6.3%. Growth was also recorded in the prices of cultural services, fiction books, as well as garden products and flowers.

Among other consumption groups, the most notable increase was recorded in the prices of restaurant, cafe and fast food services, articles for personal hygiene and beauty products, footwear, and canteen services, whereas a drop was observed in the prices of garments.

During the month, the average level of consumer prices decreased by 0.3%

In July 2016, compared to June 2016, the average level of consumer prices fell by 0.3%. Prices of goods decreased by 1.1%, whereas prices of services rose by 1.6%.

In July, the greatest pressure on the consumer price level was exerted by the drop in prices of clothing and footwear, alcoholic beverages and tobacco products, food and non-alcoholic beverages, as well as an increase in the prices of goods and services related to housing, prices in the communication group, health care, and prices in the miscellaneous goods and services group.

During the month, prices of food and non-alcoholic beverages decreased by 0.2%. Within the food group, a drop in the prices of fresh vegetables, mainly cucumbers, tomatoes and cabbages, had the most notable influence on the changes of the price level. A drop was also recorded in the prices of fresh or chilled fish, dried, salted or smoked meat, sugar, pork, fruit and vegetable juices, and poultry, while an increase was observed in the prices of fresh fruit, cheese and curd, meat preparations, yoghurt, and chocolate.

The average price level of alcoholic beverages decreased by 1.4%, which was affected by the sales of beer, wine and spirits.

Along with the start of seasonal sales, prices of garments decreased by 9.9% and prices of footwear dropped by 11.8%.

During the month, the average level of prices of goods and services related to housing rose by 1.3%, which was mainly caused by an increase in the prices of maintenance charges in multi-occupied buildings related to the introduction of the 21% VAT rate from 1 July. Heat energy became more expensive, while natural gas and solid fuels became cheaper.

The average level of health care prices grew by 0.7%, which was mainly due to the 0.7% increase in the prices of pharmaceutical products. There was also an increase in the prices of rehabilitation centre services due to seasonal factors.

The average level of prices of telecommunication services rose by 1.5% due to an increase in the prices of wireless telephone services.

Affected by the end of sales, the average level of prices of articles for personal hygiene and beauty products increased by 1.4% during the month. Growth was also recorded in the prices of funeral services.

Among other commodity groups, the most significant drop was recorded in the prices of fuels for transport (of 1.1%), whereas growth was observed in the prices of passenger transport by air and non-durable household goods.