Analytics, Inflation, Latvia, Markets and Companies

International Internet Magazine. Baltic States news & analytics Friday, 17.08.2018, 08:06

Annual inflation in Latvia made 2% in April

Davis Liberts, Statistics Latvia, 10.05.2018.Print version
The latest data of the Central Statistical Bureau (CSB) show that during the year* (in April 2018, compared to April 2017) the average level of consumer prices rose by 2.0%. Prices of goods grew by 1.5% and prices of services by 3.3%.

Compared to 2015, in April 2018 consumer prices have risen by 5.5%. Prices for goods increased by 4.6% and prices of services by 7.9%.




Compared to April 2017, in April 2018 the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to housing, goods and services related to transport, alcoholic beverages and tobacco products, as well as health care.




Just like the year before, major influence on the annual inflation was exerted by both goods and services related to transport and goods and services related to housing.


Within the group of food and non-alcoholic beverages, the greatest upward impact on the price changes during the year was exerted by the prices of butter (up by 24.8%), sour cream (10.4%), milk (7.9%), and kefir (8.6%). Increase was also observed in prices of pork (of 8.8%), fresh fruit (5.2%), eggs (12.2%), meat products (5.8%), bakery products (2.6%), fruit and vegetable juices (6.8%), and bread (1.4%). Reduction, in turn, was registered in prices of fresh vegetables (of 16.9%), sugar (36.5%), coffee (5.9%), and vegetable oil (7.4%).


The average level of prices of alcoholic beverages and tobacco products went up by 3.6%. Prices of alcoholic beverages rose by 3.7%; main increase was recorded in prices of spirits. Prices of tobacco products grew on average by 3.3%.


Prices of goods and services related to housing increased by 3.1%. Rise was recorded in prices of solid fuels, maintenance charges in multi-occupied buildings, as well as prices of services for the maintenance and repair of the dwelling, heat energy, and refuse collection.




Within the health care group, the average level of prices went up by 3.8%, Rise was registered in prices of dental services, pharmaceutical products, and prices in medical specialist practices. Within the group of goods and services related to transport, increase was recorded in prices of fuels for transport (of 7.6%), of which prices of diesel grew by 9.2% and of petrol by 7.1%, while prices of auto gas fell by 2.9%. Growth was also recorded in prices of maintenance and repair of personal transport equipment. In its turn, prices of passenger transport by air fell.


Among other commodity groups, the most significant growth was recorded in prices of motor vehicle insurance, catering services, footwear, as well as telecommunication services and television subscription fee. Decline, in turn, was registered in prices of articles for personal hygiene and beauty products, as well as household cleaning and maintenance products.


Price changes by commodity group (as per cent)

Commodity group

Price changes in April 2018, compared to:

April 2017

December 2017

March 2018

Total

2.0

1.7

0.2

food

0.3

-0.4

-0.4

alcohol, tobacco

3.6

5.6

-0.7

clothing, footwear

1.1

8.7

8.5

housing

3.1

2.0

-0.1

furnishings

-1.0

2.3

1.1

health

3.8

1.9

0.0

transport

2.9

0.5

-0.9

communication

1.3

0.6

0.3

recreation, culture

1.3

1.1

-0.3

education

0.2

-1.2

0.0

restaurants, hotels

3.0

1.2

0.5

miscellaneous

3.3

0.9

-1.4

 

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


As a result, compared to March 2018, in April 2018 the average level of consumer prices rose by 0.2%. Prices of goods increased by 0.3%, while the average level of service prices did not change. Over the month, prices of food and non-alcoholic beverages dropped by 0.4%. Poultry prices (drop of 2.9%) had the most significant lowering impact on the average price level within the group. Decrease was recorded in prices of cheese and curd (of 2.7%), butter (8.2%), sour cream (2.3%), fresh fruit (2.8%), dried, salted or smoked meat (0.8%), eggs (2.8%), bread (1.1%), pasta products (5.1%), and sugar (4.0%). Just like prior, as yield of the new season entered the market, rise was observed in prices of fresh vegetables (6.8%). As sales campaigns ended, increase was recorded in prices of pork (of 1.9%), coffee (1.2%), and meat products (2.0%).




The average level of alcoholic beverage and tobacco product prices fell by 0.7%. Prices of alcoholic beverages dropped by 1.1%, which was mainly influenced by the sales campaigns. The average level of tobacco product prices did not change.


As goods of the summer season kept entering the market, prices of footwear in April grew by 17.6% and prices of garments rose by 6.0%.


Prices of furnishings went up by 1.1%. Along with the ending sales, rise was observed in prices of household cleaning and maintenance products. Growth was recorded also in the average level of furniture and dish prices. Prices of goods and services related to transport reduced by 0.9%, which was mainly affected by the decline in prices of spare parts and accessories for personal transport, fuels for transport (0.5%), and passenger transport by air.


Within the group of miscellaneous goods and services, the average level of prices dropped by 1.4%; the drop due to sales was mainly influenced by prices of articles for personal hygiene and beauty products.


The most notable rise among other commodity groups was recorded in prices of catering services and package holidays. Reduction, in turn, was registered in prices of flowers.


Information on consumer price index changes in May 2018 will be published on 8 June.


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.








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