Analytics, Inflation, Latvia, Markets and Companies

Compared to July 2016, in July 2017 the greatest pressure on the price changes was put by the rise in prices of food and non-alcoholic beverages, goods and services related to housing, prices in miscellaneous goods and services group, prices of alcoholic beverages and tobacco products, as well as decline in prices of clothing and footwear.

The average level of food and non-alcoholic beverage prices increased by 6.6%. Rise was recorded in prices of vegetables, meat and meat products, milk products, butter, milk, cheese and curd, bakery products, fresh or chilled fish, eggs, sugar, fresh fruit, and chocolate.

Within the group of alcoholic beverages and tobacco products, the average level of prices went up by 2.7%, which was mainly influenced by 5.4% growth in prices of tobacco products. Prices of alcoholic beverages, of which beer, spirits and wine, increased by 1.2%.

Over the year, prices of garments dropped by 3.5% and prices of footwear by 8.8%.

Prices of goods and services related to housing rose by 2.2%. Increase was observed in prices of heat energy, natural gas, solid fuels, refuse collection, as well as services for the maintenance and repair of the dwelling, whereas decline was recorded in prices of materials for the maintenance and repair of the dwelling.

Within the miscellaneous goods and services group, the average level of prices grew by 4.9%, which was mostly due to the influence exerted by the rise in prices of motor vehicle insurance as well as articles for personal hygiene and beauty products.

Within other commodity groups, the most significant growth was recorded in prices of telecommunication services, catering services, pharmaceutical products, maintenance and repair of personal transport equipment, and prices of package holidays. Decline was observed in prices of household cleaning and maintenance products as well as passenger transport by air.

During the month, the average level of consumer prices decreased by 0.7%

Compared to June 2017, in July 2017 the average level of consumer prices decreased by 0.7%. Prices of goods diminished by 1.2%, while prices of services increased by 0.4%.

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

Over the month, prices of food and non-alcoholic beverages fell by 0.1%. Decline was recorded in prices of coffee, cheese and curd, fresh vegetables, yoghurt, meat products, dried, salted or smoked meat, fresh or chilled fish, as well as dried fruit and nuts. Increase, in its turn, was observed in prices of pork, butter, potatoes, poultry, sugar, as well as flours and other cereals.

The average level of alcoholic beverage and tobacco product prices went up by 0.5%. Under the influence of the end of discounts, prices of beer and spirits rose.

As the summer season sales continued, prices of garments decreased by 12.6% and prices of footwear by 9.4%.

During the month, the average level of prices of goods and services related to housing increased by 0.2%. As of 1 July, price of natural gas for households went up on average by 3.7%. Rentals for housing rose, whereas prices of materials for the maintenance and repair of the dwelling fell.

Prices of goods and services related to transport diminished by 1.0%, which was mainly affected by 3.2% drop in prices of fuels for transport. Increase was recorded in prices of passenger transport by sea and passenger transport by air.

Within the miscellaneous goods and services group, growth was observed in prices of motor vehicle insurance (of 7.2%) as well as articles for personal hygiene and beauty products.

Within other commodity groups, the most notable decrease was recorded in prices of flowers, pet food, hotel services, as well as household cleaning and maintenance products. Increase, in its turn, was observed in prices of pharmaceutical products.

Information on consumer price changes in August 2017 will be published on 8 September.

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

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