Analytics, Inflation, Lithuania, Markets and Companies

International Internet Magazine. Baltic States news & analytics Wednesday, 20.06.2018, 16:06

In May, annual inflation in Latvia made 2.3%

Dāvis Liberts , Statistics Latvia, 08.06.2018.Print version
The latest data of the Central Statistical Bureau (CSB) show that during the year* in May 2018, compared to May 2017, the average level of consumer prices rose by 2.3%. Prices of goods grew by 1.9% and prices of services by 3.2%.

Compared to 2015, in May 2018 consumer prices have risen by 5.8%. Prices for goods increased by 4.9% and prices of services by 8.3%.




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


Within the group of food and non-alcoholic beverages, the greatest upward pressure on the price changes during the year was exerted by prices of butter (32.6%), sour cream (10.3%), milk (7.4%), and kefir (8.5%). Increase was observed also in prices of pork (of 8.5%), poultry (3.6%), eggs (11.2%), bread (1.9%), as well as fruit and vegetable juices (4.8%). Reduction, in turn, was registered in prices of sugar (of 31.2%), coffee (10.2%), fresh vegetables (3.6%), flours and other cereals (6.5%), pasta products (6.7%), chocolate (3.1%) and vegetable oil (5.4%).




The average level of prices of alcoholic beverages and tobacco products went up by 4.1%. Prices of alcoholic beverages grew by 3.2%, which was mainly influenced by the rise in prices of spirits. Prices of tobacco products increased on average by 5.7%.


Prices of goods and services related to housing rose by 3.2%. Increase was recorded also in prices of solid fuels, maintenance charges in multi-occupied buildings, prices of heat energy, refuse collection, as well as rentals for housing, while sales resulted in a decline in prices of materials for the maintenance and repair of the dwelling.




Within the health care group, the average level of prices went up by 3.9%. 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 10.4%), of which prices of diesel grew by 12.5% and of petrol by 9.8%, while prices of auto gas fell by 4.2%. Growth was recorded also in prices of maintenance and repair of personal transport equipment. In its turn, prices of passenger transport by air fell.


Within the group of miscellaneous goods and services, the average level of prices grew by 4.8%, which was mostly influenced by the rise in prices of motor vehicle insurance. Increase was recorded also in prices of services in hairdressing salons and personal grooming establishments, as well as prices of financial services. Decline, in its turn, was registered in prices of articles for personal hygiene and beauty products.


Among other commodity groups, the most significant growth was recorded in prices of footwear, catering services, telecommunication services and television subscription fee. Drop, in turn, was observed in prices of household cleaning and maintenance products, package holidays, and pet food.


Price changes by commodity group (as per cent)

Commodity group

Price changes in May 2018, compared to:

May 2017

December 2017

April 2018

Total

2.3

2.0

0.3

food

0.4

0.1

0.5

alcohol, tobacco

4.1

5.8

0.2

clothing, footwear

2.0

7.7

-0.9

housing

3.2

2.2

0.1

furnishings

-0.8

2.3

0.0

health

3.9

2.6

0.6

transport

3.7

1.4

0.9

communication

2.3

1.6

1.0

recreation, culture

0.3

0.2

-1.0

education

0.2

-1.2

0.0

restaurants, hotels

3.1

1.8

0.6

miscellaneous

4.8

2.1

1.2

 

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



Compared to April 2018, in May 2018 the average level of consumer prices rose by 0.3%. Prices of goods increased by 0.3% and prices of services by 0.4%. The greatest pressure on the consumer prices was exerted by the growth in prices of goods and services related to transport, food and non-alcoholic beverages, prices in miscellaneous goods and services group, as well as by the drop in prices of goods and services related to recreation and culture, and prices of clothing and footwear.


Over the month, prices of food and non-alcoholic beverages grew by 0.5%. Prices of fresh vegetables (up by 7.7%), dried, salted or smoked meat (up by 1.4%), poultry (up by 2.3%), butter (up by 6.4%), and ice cream (up by 3.5%) had the most significant upward impact on the average price level within the group. Decrease, in its turn, was recorded in prices of cheese (4.1%), chocolate (4.1%), meat products (3.5%), and eggs (2.6%). Mainly due to the influence exerted by discounts, prices of footwear fell by 1.8% and prices of garments by 0.7%.


Prices of goods and services related to transport increased by 0.9%, which was mostly influenced by the rise in prices of fuels for transport (of 1.7%), of which increase of 2.0% in diesel price and of 1.7% in petrol price. Prices of passenger transport by air went up as well.




Within the recreation and culture group, the average level of prices fell by 1.0%, which was mainly affected by the 10.3% drop in prices of package holidays. Reduction was recorded in prices of flowers, pet food, whereas increase was observed in television subscription fee.


The rise in prices within the group of miscellaneous goods and services was mainly influenced by the increase in prices of articles for personal hygiene and beauty products (of 1.8%) caused by the end of sales.


Among other consumption groups, the most significant growth was recorded in prices of tobacco products, telecommunication services, and pharmaceutical products. Discounts, in turn, had lowering impact on beer prices. Information on consumer price index changes in June 2018 will be published on 10 July. More 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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