Analytics, Inflation, Latvia, Statistics

International Internet Magazine. Baltic States news & analytics Saturday, 19.10.2019, 23:01

Latvia records 2.6% annual inflation in September

Nataļja Dubkova Consumer Price Indices Section, 08.10.2019.Print version
The latest data of the Central Statistical Bureau (CSB) show that in September 2019, compared to September 2018, the average level of consumer prices* rose by 2.6%. Prices of goods increased by 2.4% and prices of services by 3.0%.



Compared to 2015, in September 2019 consumer prices were 8.9% higher. Prices of goods increased by 7.3% and prices of services by 13.1%.



Compared to September 2018, in September 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 recreation and culture, restaurant and hotel services, as well as health care.



Over the year, prices within the group of food and non-alcoholic beverages increased by 2.4%. Prices of bread (rise of 8.9%), bakery products (5.0%), as well as flours and other cereals (10.1%) had the strongest upward influence on the average price level within the group. Increase was recorded in prices of pork (of 11.4%), dried, salted or smoked meat (3.0%), meat products (6.8%), and poultry (1.8%). Upturn was also registered in prices of potatoes (of 19.3%), chocolate (7.9%), eggs (5.3%), preserved or processed fish and seafood-based preparations (4.9%), pasta products (6.2%), and rice (12.3%). Reduction, in turn, was registered in prices of fresh fruit (9.5%), coffee (4.7%), milk (5.6%), as well as fresh or chilled fish (6.5%).


The average level of alcoholic beverage and tobacco product prices went up by 4.8%. Prices of alcoholic beverages increased by 4.9%, which was mainly influenced by the rise in prices of beer and spirits. Prices of tobacco products on average grew by 4.9%.


Over the year, prices of goods and services related to housing rose by 4.0%. Increase was registered in prices of electricity, heat energy, refuse collection, solid fuels, rentals for housing, materials for the maintenance and repair of the dwelling, as well as services for the maintenance and repair of the dwelling. Reduction, in turn, was observed in natural gas prices.


The average level of prices within the health care group rose by 2.1%, which was mainly influenced by the increase in prices of dental services, prices in medical specialist practice, as well as prices of pharmaceutical products.


Prices of goods and services related to recreation and culture grew by 4.6%. Rise was registered in prices of package holidays, pet food, and television subscription fee.


Prices of restaurant and hotel services grew on average by 3.7%, which was mainly influenced by the rise in restaurant and cafe service prices of 4.8%. Prices of canteen services went up by 3.9%.


Upturn in prices of garments, telecommunication services, articles for personal hygiene and beauty products, passenger transport by air, as well as maintenance and repair of personal transport equipment had significant influence on the price rise over the year as well. Reduction, in turn, was registered in the average level of prices of fuels for transport (of 2.1%) and motor vehicle insurance.

Price changes by commodity group
(as per cent)

Commodity group

Price changes in September 2019, compared to

September 2018

December 2018

August 2019

Total

2.6

2.4

0.1

food

2.4

1.0

-1.2

alcohol, tobacco

4.8

5.4

-0.7

clothing, footwear

1.8

2.2

4.5

housing

4.0

3.5

0.1

furnishings

2.2

2.9

0.4

health

2.1

2.2

0.2

transport

-0.2

0.0

-0.7

communication

1.8

2.1

-0.1

recreation, culture

4.6

5.3

0.9

education

-0.4

-0.5

-0.3

restaurants, hotels

3.7

3.1

-0.2

miscellaneous

1.0

2.2

2.1

 



During the month, the average level of consumer prices increased by 0.1%

Compared to August 2019, in September 2019 the average level of consumer prices rose by 0.1%. Prices of goods grew by 0.2%, while prices of services fell by 0.3%. Rise in prices of clothing and footwear, prices in miscellaneous goods and services group, prices of goods and services related to recreation and culture, as well as decline in prices of food and non-alcoholic beverages, goods and services related to transport, as well as alcoholic beverages and tobacco products exerted the greatest influence on the price changes.





Over the month, prices of food and non-alcoholic beverages dropped by 1.2%. Prices of vegetables and fresh fruit (drop of 9.3% and 7.8%, respectively) had the strongest lowering influence on the average price level within the group. Decline was registered in prices of milk (4.3%), milk products (1.7%), fresh or chilled fish (6.0%), and coffee (1.1%). Increase, in turn, was recorded in prices of eggs (of 2.5%), chocolate (2.4%), poultry (1.0%), dried, salted or smoked meat (0.5%), as well as vegetable oil (4.1%).


The average level of alcoholic beverage and tobacco product prices fell by 0.7%, which was mainly influenced by the decline in spirit prices.

As goods of the new season entered the market, footwear prices went up by 10.3% and garment prices by 2.8%.


Prices of goods and services related to transport reduced by 0.7%, which was mainly influenced by the reduction in prices of passenger transport by air and passenger transport by sea. Along with the end of the summer season, reduction was registered in car rental prices. The average level of prices of fuels for transport did not change. Prices of petrol fell by 0.9%, while prices of diesel rose by 0.6%.

Price level within the group of recreation and culture increased by 0.9%. Upturn was registered in out-of-school lesson fees, as well as prices of pet food and fiction books.


Within the miscellaneous goods and services group, prices rose on average by 2.1%, which was caused by the rise in prices of articles for personal hygiene and beauty products. Reduction, in turn, was registered in prices of child-care services.

The most significant growth among other commodity groups was recorded in prices of higher education, refuse collection, as well as household cleaning and maintenance products. Decline, in turn, was recorded in prices of pre-primary education, rentals for housing, as well as prices of hotel services.






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