Analytics, Economics, Inflation, Latvia, Statistics

International Internet Magazine. Baltic States news & analytics Saturday, 20.07.2019, 17:31

Latvia's annual inflation hits 3.4% in April

Nataļja Dubkova Consumer Price Indices Section, 10.05.2019.Print version
The latest data of the Central Statistical Bureau (CSB) show that in April 2019, compared to April 2018, the average level of consumer prices* rose by 3.4%. Prices of goods increased by 3.5% and prices of services by 3.3%.



Compared to 2015, in April 2019 consumer prices were 9.1% higher. Prices of goods increased by 8.2% and prices of services by 11.4%.



Compared to April 2018, in April 2019 the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to housing, food and non-alcoholic beverages, alcoholic beverages and tobacco products, goods and services related to transport, restaurant and hotel services, as well as prices in miscellaneous goods and services group.



Over the year, prices within the group of food and non-alcoholic beverages increased by 3.2%. Prices of fresh vegetables (rise of 18.4%) had the strongest upward influence on the average price level within the group. During the year, rise was recorded in prices of bread (of 10.0%), flours and other cereals (9.6%), as well as bakery products (2.8%). Increase was also registered in prices of poultry (of 3.2%), pork (2.8%), meat preparations (4.5%), chocolate (4.3%), ice cream (4.5%), and butter (4.4%). Prices of fresh fruit, in turn, diminished (by 5.7%).


The average level of alcoholic beverage and tobacco product prices went up by 6.0%. Prices of alcoholic beverages increased by 4.4%, which was mainly influenced by the rise in prices of beer and spirits. Prices of tobacco products grew on average by 8.9%.


Over the year, prices of goods and services related to housing went up by 5.9%. Increase was registered in prices of electricity, natural gas, water supply, refuse collection, rentals for housing, as well as prices of solid fuels and heat energy.


Increase in prices of fuels for transport (of 5.7%) had the greatest influence within the group of goods and services related to transport. Prices of diesel grew by 6.8%, of petrol by 3.2%, and of auto gas by 12.4%. Upturn was also recorded in prices of maintenance and repair of personal transport equipment and passenger transport by air, while prices of second-hand motor cars dropped.


The average level of restaurant and hotel service prices went up by 4.0%. The main upward pressure on the increase was exerted by prices of catering services the average level whereof went up by 4.2%.


Within the miscellaneous goods and services group, the average level of prices rose by 3.8%, which was mainly influenced by the rise in prices of articles for personal hygiene and beauty products as well as prices in hairdressing salons and of personal grooming establishment services. During the year, decline was recorded in prices of motor vehicle insurance (of 5.5%).

During the year strong influence on price growth was also recorded in prices of telecommunication services, television subscription fee, household cleaning and maintenance products, and dental services. In its turn, the average level of footwear prices reduced.


Price changes by commodity group 
(as %)

Commodity group

Price changes in April 2019, compared to:

April 2018

December 2018

March 2019

Total

3.4

2.5

0.9

food

3.2

2.2

0.5

alcohol, tobacco

6.0

5.6

-0.2

clothing, footwear

-0.3

7.4

7.4

housing

5.9

3.1

0.1

furnishings

0.8

1.9

0.7

health

2.2

1.5

0.8

transport

3.3

0.4

1.2

communication

2.9

2.4

0.6

recreation, culture

2.3

2.5

-0.8

education

2.9

0.0

0.0

restaurants, hotels

4.0

1.3

1.0

miscellaneous

3.8

1.8

1.6

 



During the month, the average level of consumer prices increased by 0.9 %

Compared to March 2019, in April 2019 the average level of consumer prices rose by 0.9%. Prices of goods increased by 1.1% and prices of services by 0.3%. Rise in prices of clothing and footwear, goods and services related to transport, food and non-alcoholic beverages, prices in miscellaneous goods and services group, as well as drop in prices of goods and services related to recreation and culture had the strongest influence on the price changes within the group.






Over the month, the average level of food and non-alcoholic beverage prices went up by 0.5%. Prices of fresh vegetables (rise of 8.6%) and potatoes (increase of 6.8%) had the strongest upward influence on the average price level within the group mainly because of the short supply thereof resulting from the unfavourable weather conditions. Meeting the world market trends, rise was recorded in pork prices (of 2.5%). Increase was registered in prices of poultry (of 1.7%) and meat preparations (2.0%). Rise was also recorded in prises of coffee (of 4.0%), bread (0.8%), and yoghurt (1.6%). Decline, in turn, was registered in prices of fresh fruit (4.1%), dried, salted or smoked meat (1.9%), cheese and curd (1.5%), bakery products (1.4%), as well as fresh or chilled fish (6.1 %).


The average level of prices within the clothing and footwear group went up by 7.4%. Seasonal price rise mainly was influenced by the increase in footwear prices of 19.2%. Garment prices grew on average by 3.9%.


Prices of goods and services related to transport went up by 1.2%. The average level of prices of fuels for transport grew by 2.2%, of which prices of petrol by 4.7% and of diesel by 0.9%. Increase was also registered in prices of passenger transport by air.


Within the recreation and culture group, the average level of prices fell by 0.8%, which was mainly influenced by the decline in prices of package holidays, pet food, and television subscription fee.


Within the miscellaneous goods and services group, the average level of prices rose by 1.6%, which was influenced by the rise in prices of articles for personal hygiene and beauty products.


During the month strong influence on price growth was also recorded in prices of spirits, household cleaning and maintenance products, pharmaceutical products, wireless telephone services, as well as hotel and restaurants services. Reduction, in turn, was registered in the average level of prices of beer, tobacco products, and wine.


Information on consumer price index changes in May 2019 will be published on 10 June.






Search site