Analytics, Inflation, Latvia, Retail, Statistics

International Internet Magazine. Baltic States news & analytics Friday, 30.10.2020, 21:30

Latvia records 2.1% annual inflation in November

Dāvis Liberts Consumer Price Indices Section, 09.12.2019.Print version
The latest data of the Central Statistical Bureau (CSB) show that in November 2019, compared to November 2018, the average level of consumer prices* rose by 2.1%. Prices of goods increased by 1.8% and prices of services by 2.9%.




Compared to 2015, in November 2019 consumer prices were 9.1% higher. Prices of goods increased by 7.8% and prices of services by 12.3%.



Compared to November 2018, in November 2019 the greatest influence on the average level of consumer prices was exerted 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, health care, restaurant and hotel services, as well as the decline in prices of goods and services related to transport.



Over the year, prices within the group of food and non-alcoholic beverages increased by 2.5%. Prices of dried, salted or smoked meat (up by 6.9%), pork (10.7%), poultry (3.9%), and meat products (4.0%) had the most significant upward influence on the average price level within the group. Upturn was also registered in prices of bread (of 4.9%), fresh fruit (6.1%), bakery products (3.6%), chocolate (5.2%), yoghurt (5.1%), sugar (5.7%), and potatoes (6.3 %). Reduction, in turn, was recorded in prices of coffee (of 6.5 %), milk (5.8%), eggs (3.5%), fresh vegetables (1.0%), as well as cheese and curd (1.1%).


The average level of alcoholic beverage and tobacco product prices went up by 4.5%. Prices of alcoholic beverages increased by 4.6%, which was mainly influenced by the change in beer prices. Tobacco product prices grew on average by 4.5%.


Over the year, prices of goods and services related to housing rose by 3.6%. Increase was registered in prices of electricity, heat energy, refuse collection, materials for the maintenance and repair of the dwelling, rentals for housing, services for the maintenance and repair of the dwelling, as well as maintenance charges in multi-occupied buildings. Reduction, in turn, was observed in natural gas and solid fuel prices.


Within the health care group, the average level of prices rose by 2.7%, which was mainly influenced by the prices increase in medical specialist practice and rise in prices of dental services and pharmaceutical products.


Within the group of goods and services related to transport, the strongest downward influence was exerted by prices of fuel (of 5.2%), of which prices of diesel fell by 6.6%, of petrol by 2.9%, and of auto gas by 7.4%. Reduction was also observed in prices of second-hand motor cars. Rise, in turn, was registered in the average level of prices of maintenance and repair of personal transport equipment as well as passenger transport by air.


Prices of goods and services related to recreation and culture grew by 3.5%. Increase was recorded in prices of package holidays and television subscription fee.

Prices of restaurant and hotel services grew on average by 3.1%, which was mainly influenced by the rise in restaurant and café service prices (of 3.5%). Prices of canteen services went up by 3.9%.


Upturn in prices of telecommunication services, garments, hairdressing salons and personal grooming establishment services, household furniture, and footwear had significant influence on the price rise over the year as well. The average level of motor vehicle insurance prices, in turn, reduced.


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

Compared to October 2019, in November 2019 the average level of consumer prices dropped by 0.3%. Prices of goods fell by 0.2% and prices of services by 0.4%. Decline in prices of goods and services related to transport, goods and services related to recreation and culture, clothing and footwear, goods and services related to housing, food and non-alcoholic beverages, as well as increase in prices in miscellaneous goods and services group had the strongest influence on the price changes.






Over the month, prices of food and non-alcoholic beverages dropped by 0.1%. Prices of bread (drop of 1.7%), poultry (1.6%), potatoes (5.1%), meat products (2.2%) fresh or chilled fish (5.4%), preserved or processed fish and seafood-based preparations (2.7%), eggs (2.0 %), and butter (2.9%) had the strongest downward influence on the average price level within the group. Increase, in turn, was registered in prices of milk (of 3.4%), yoghurt (2.4%), fruit and vegetable juices (3.0 %), as well as dried, salted or smoked meat (0.5%).


Sales campaigns caused a 3.5% drop of footwear prices, while the average level of garment prices did not change.


Prices of goods and services related to housing decreased by 0.1%. Reduction was recorded in prices of solid fuels and rentals for housing, whereas increase was registered in prices of materials for the maintenance and repair of the dwelling.

Prices of goods and services related to transport reduced by 0.9%, which was mainly influenced by the decline in prices of passenger transport by air (of 8.9%). The average level of prices of fuels for transport dropped by 1.1%, of which prices of diesel reduced by 1.2%, of petrol by 0.7%, and of auto gas by 2.9%.


Prices of goods and services related to recreation and culture fell by 0.7%. Decline was registered in prices of package holidays, and due to sales campaigns prices of pet food fell as well.


Price changes by commodity group
(as per cent)

Commodity group

Price changes in November 2019, compared to

November 2018

December 2018

October 2019

Total

2.1

2.5

-0.3

food

2.5

1.9

-0.1

alcohol, tobacco

4.5

5.0

-0.1

clothing, footwear

1.7

4.6

-0.9

housing

3.6

3.7

-0.1

furnishings

1.7

3.7

-0.4

health

2.7

2.5

0.2

transport

-1.6

-0.8

-0.9

communication

2.2

2.4

0.2

recreation, culture

3.5

4.0

-0.7

education

-0.5

-0.5

0.0

restaurants, hotels

3.1

2.7

-0.1

miscellaneous

0.0

1.7

0.7


Within the miscellaneous goods and services group, prices rose on average by 0.7%, which was affected by the rise in prices of articles for personal hygiene and beauty products.


The most significant downturn among other commodity groups was recorded in prices of spirits, beer, as well as household cleaning and maintenance products, while upturn was registered in wine prices.

 






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