Analytics, Inflation, Latvia, Retail, Statistics

International Internet Magazine. Baltic States news & analytics Wednesday, 03.06.2020, 20:20

Latvia: During the year, the average level of consumer prices increased by 2.3%

BC, Riga, 09.03.2020.Print version
The latest data of the Central Statistical Bureau (CSB) show that in February 2020, compared to February 2019, the average level of consumer prices* rose by 2.3%. Prices of goods increased by 1.9% and prices of services by 3.1%.



Compared to 2015, in February 2020 consumer prices were 9.4% higher. Prices of goods increased by 7.7% and prices of services by 13.7%.



 

 Compared to February 2019, in February 2020 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 transport, health care, restaurant and hotel services, goods and services related to recreation and culture, as well as alcoholic beverages and tobacco products.



 

Over the year, prices within the group of food and non-alcoholic beverages increased by 4.4%. Prices of dried, salted or smoked meat (up by 10.4%), pork (14.3%), poultry (8.0%), and meat products (8.7%) had the most significant upward impact on the average price level within the group. Upturn was registered in prices of fresh fruit and fresh vegetables (of 19.4% and 7.4%, respectively). Rise was also recorded in prices of fresh or chilled fish (of 14.6%), bakery products (2.2%), flours and other cereals (5.3%), as well as rice (9.9%). Decline, in turn, was recorded in prices of coffee (of 4.4%), cheese and curd (1.1%), and sour cream (3.0%).

 

The average level of alcoholic beverage and tobacco product prices went up by 1.5%. Prices of alcoholic beverages grew by 0.9%, which was mainly due to the rise in prices of spirits. Prices of tobacco products grew on average by 2.6%.

 

Within the health care group, the average level of prices rose by 3.4%, which was mainly due to the increase in prices of general medical practice and dental services, as well as prices in medical specialist practice. Upturn was also registered in prices of pharmaceutical products.

 

Prices of goods and services related to transport increased by 2.7%, which was affected by the rise in prices of fuels for transport (of 4.8%) – prices of petrol increased by 9.0% and that of diesel by 2.4%, whereas the average level of auto gas prices did not change over the year. Upturn was also recorded in prices of maintenance and repair of personal transport equipment, as well as passenger transport, including passenger transport by road, air and rail. Decline, in turn, was recorded in the average level of second-hand motor car prices.

 

Prices of goods and services related to recreation and culture grew by 1.9%. Over the year, an upturn was registered in the average level of television subscription fee, prices of package holidays, newspapers and magazines, as well as recreational and sporting services.

 

During the year, the average level of restaurant and hotel service prices went up by 3.5%. The rise was mainly affected by prices of catering services, as the average level of restaurant and café service prices increased by 3.7% and that of canteen services by 4.9%.

 

The most significant upturns among other commodity groups were recorded in prices of heat energy, maintenance charges in multi-occupied buildings, prices of telecommunication services, articles for personal hygiene and beauty products, rentals for housing, refuse collection, hairdressing salons and personal grooming establishment services, as well as garments. Downturns, in turn, were registered in prices of natural gas, electricity and motor vehicle insurance.


Price changes by commodity group
(as per cent)

Commodity group

Price changes in February 2020, compared to

February 2019

December 2019

January 2020

Total

2.3

0.5

0.1

food

4.4

2.7

1.0

alcohol, tobacco

1.5

0.7

-0.5

clothing, footwear

0.9

-7.7

1.4

housing

0.1

-0.2

0.0

furnishings

0.8

0.5

-0.4

health

3.4

1.7

0.3

transport

2.7

0.2

-1.5

communication

2.3

1.1

0.0

recreation, culture

1.9

0.2

0.6

education

-0.5

0.1

0.0

restaurants, hotels

3.5

1.0

0.8

miscellaneous

0.9

1.6

-0.2

 

 


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

Compared to January 2020, in February 2020 the average level of consumer prices rose by 0.1%. Prices of services increased by 0.5%, while the average level of prices of goods did not change. Rise in prices of food and non-alcoholic beverages, clothing and footwear, goods and services related to recreation and culture, restaurant and hotel services, as well as decline in prices of goods and services related to transport, alcoholic beverages and tobacco products exerted the greatest influence on the price changes.






Over the month prices of food and non-alcoholic beverages grew by 1.0%. Prices of fresh vegetables and fresh fruit (rise of 14.2% and 2.5%, respectively) had the strongest upward influence on the average price level within the group. Increase was recorded in prices of dried, salted or smoked meat (of 2.4%) and poultry (1.6%). Upturn was also registered in prices of bakery products (of 1.9%), curd (3.9%), sweets (5.6%), as well as fresh or chilled fish (4.6%). Downturn during the month, in turn, was recorded in prices of pork (of 3.0%), coffee (3.0%), yoghurt (4.8%), chocolate (3.7%), milk products (1.7%), pasta products (5.8%), and eggs (2.9%).


The average level of alcoholic beverage prices fell by 1.1%, which was mainly due to the influence exerted by the sales of beer and spirits. The average level of tobacco product prices increased by 0.5%.


Prices of garments grew by 2.1% and prices of footwear by 0.2%.


Prices of goods and services related to transport dropped on average by 1.5%. Prices of fuels for transport reduced by 3.7%, of which prices of diesel by 4.4%, of petrol by 3.1%, and of auto gas by 0.7%. Prices of passenger transport by air, in turn, grew.


Prices of goods and services related to recreation and culture grew by 0.6%. Rise was observed in the average level of package holiday and flower prices.


The average level of restaurant and hotel service prices went up by 0.8%. The growth was mainly affected by catering service prices, as the average level of restaurant and café service prices increased by 0.6% and that of canteen services by 0.9 %. Prices of hotel services grew on average by 2.3%.


The most significant upturn among other commodity groups was recorded in prices of pharmaceutical products and rentals for housing. Decline, in turn, was registered in prices of articles for personal hygiene and beauty products as well as materials for the maintenance and repair of the dwelling.


Information on consumer price index changes in March 2020 will be published on 8 April.


*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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