Analytics, Economics, Inflation, Latvia, Statistics

International Internet Magazine. Baltic States news & analytics Wednesday, 18.09.2019, 14:57

Latvia: During the year, the average level of consumer prices increased by 3.3 %

Nataļja Dubkova Consumer Price Indices Section, 10.06.2019.Print version
The latest data of the Central Statistical Bureau (CSB) show that in May 2019, compared to May 2018, the average level of consumer prices* rose by 3.3%. Prices of goods increased by 3.4% and prices of services – by 3.1%.



Compared to 2015, in May 2019 consumer prices were 9.3% higher. Prices of goods increased by 8.5% and prices of services by 11.6%.



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

Over the year, prices within the group of food and non-alcoholic beverages increased by 4.3%. Prices of vegetables (rise of 19.0%) had the strongest upward influence on the average price level within the group. During the year, rise was recorded in prices of bread (of 9.7%), bakery products (5.1%), flours and other cereals (13.2%). Increase was also registered in prices of pork (of 7.1%), cheese and curd (4.1%), meat preparations (9.2 %), chocolate (8.2%), fruit and vegetable juices (7.3%), and dried fruit and nuts (11.4%). Reduction, in turn, was registered in prices of fresh fruit (5.9%), coffee (3.4%).


The average level of alcoholic beverage and tobacco product prices went up by 4.6%. Prices of alcoholic beverages increased by 3.7%, which was mainly influenced by the rise in prices of beer and spirits. Prices of tobacco products grew on average by 6.2%.


Over the year, prices of goods and services related to housing went up by 5.1%. Increase was registered in prices of electricity, natural gas, water supply, refuse collection, rentals for housing, and solid fuels. Average level of heat energy prices reduced.


Increase in prices of fuels for transport (of 7.0%) had the greatest influence within the group of goods and services related to transport. Prices of diesel grew by 7.4%, of petrol by 5.5%, and of auto gas by 13.6%. Upturn was also recorded in prices of maintenance and repair of personal transport equipment and passenger transport by air.


Within the recreation and culture group, the average level of prices rose by 3.2%, which was mainly influenced by the rise in prices of pet food, television subscription fee and flowers.


The average level of restaurant and hotel service prices went up by 4.7%. The main upward pressure on the increase was exerted by prices of catering services the average level whereof went up by 4.5%.


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


Price changes by commodity group
(as %)


Commodity group

Price changes in May 2019, compared to:

May 2018

December 2018

April 2019

Total

3.3

2.8

0.2

food

4.3

3.7

1.5

alcohol, tobacco

4.6

4.4

-1.1

clothing, footwear

0.2

7.0

-0.3

housing

5.1

2.4

-0.6

furnishings

0.8

1.8

0.0

health

1.8

1.7

0.2

transport

3.6

1.7

1.3

communication

1.3

1.9

-0.5

recreation, culture

3.2

2.5

0.0

education

2.9

0.1

0.0

restaurants, hotels

4.7

2.5

1.2

miscellaneous

-0.1

-0.8

-2.6

 



During the month, the average level of consumer prices increased by 0.2 %

Compared to April 2019, in May 2019 the average level of consumer prices rose by 0.2%. Prices of both goods and services grew by 0.2%. Rise in prices of food and non-alcoholic beverages, goods and services related to transport, hotel and restaurants services, as well as drop in prices of miscellaneous goods and services group, goods and services related to housing, alcoholic beverages and tobacco products contributed the most to the monthly price changes.





Over the month, the average level of food and non-alcoholic beverage prices went up by 1.5%. Prices of fresh vegetables (rise of 6.7%) had the strongest upward influence on the average price level within the group. Prices of pork (rise of 4.4%) continued to increase. Increase was also registered in prices of cheese and curd (of 2.6%), dried, salted or smoked meat (1.4%), fruit and vegetable juices (4.6%), bakery products (1.4%) and fresh or chilled fish (5.8%). Decline, in turn, was registered in prices of coffee (2.3%), yoghurt (2.3%), poultry (0.9%).


The average level of alcoholic beverage and tobacco product prices reduced by 1.1%. Prices of alcoholic beverages fell by 1.7%, which was mainly influenced by the decline in prices of spirits.


Decrease was recorded in prices of goods and services related to housing (of 0.6% on average), which was mainly exerted by price drop on heat energy (2.6%).


Prices of goods and services related to transport went up by 1.3%. The average level of prices of fuels for transport grew by 2.9 %, of which prices of petrol by 3.9% and of diesel by 2.5%. Increase was also registered in prices of passenger transport by air.


The average level of restaurant and hotel service prices went up by 1.2%. Increase was registered in prices of hotel and catering services.


Within the miscellaneous goods and services group, the average level of prices fell by 2.6%, which was influenced by the drop in prices of articles for personal hygiene and beauty products. Prices of hairdressing salons and of personal grooming establishment services increased.


During the month strong influence on price growth was also recorded in prices of pet food. Reduction, in turn, was registered in the average level of prices of package holidays, clothing, and telecommunication services.






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