Analytics, Inflation, Latvia, Statistics

International Internet Magazine. Baltic States news & analytics Thursday, 28.03.2024, 12:05

Latvia: During the year, the average level of consumer prices increased by 1.4%

Nataļja Dubkova Consumer Price Indices Section, 10.04.2020.Print version
The latest data of the Central Statistical Bureau (CSB) show that in March 2020, compared to March 2019, the average level of consumer prices* rose by 1.4%. Prices of goods increased by 0.9% and prices of services by 2.7%.



Compared to 2015, in March 2020 consumer prices were 9.7% higher. Prices of goods increased by 8.0% and prices of services by 14.0%.



Compared to March 2019, in March 2020 the average level of consumer prices was mainly influenced by the rise in prices of food and non-alcoholic beverages, health care, restaurant and hotel services, goods and services related to recreation and culture, clothing and footwear, as well as 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 3.5%. Prices of dried, salted or smoked meat (up by 10.1%), pork (15.5%), poultry (6.5%), and meat products (10.1%) had the most significant upward impact on the average price level within the group. Upturn was registered also in prices of fresh fruit and fresh vegetables (of 9.1% and 4.7%, respectively), as well as in prices of bread (3.5%), bakery products (2.9%), sugar (4.3%), fruit and vegetable juices (3.4%), and rice (9.5%). Decline was recorded in prices of curd (of 9.1%), milk products (3.5%), potatoes (11.5%), and milk (4.6%).


The average level of garment prices rose by 1.5%, whereas that of footwear by 4.0%.

Within the health care group, the average level of prices rose by 3.5%, which was mainly influenced by the increase in prices in general medical practice, prices of 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 went down by 1.1%, which was affected by the 4.7% decline in prices of fuels for transport – mainly diesel (of 8.1%) and auto gas (of 4.3%), whereas the average level of petrol prices did not change over the year. The average level of second-hand motor car prices reduced. Increase, in turn, was observed in prices of passenger transport by road, maintenance and repair of personal transport equipment, as well as passenger transport by train.


Prices of goods and services related to recreation and culture grew by 1.9%. Over the year, rise was registered in the average level of pet food, newspaper and magazine, as well as flower prices. The average level of book prices reduced.


The average level of restaurant and hotel service prices went up by 3.6%. The price rise was mainly affected by catering services, as the average level of restaurant and café service prices increased by 3.9 % and that of canteen services by 5.0%.


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


Price changes by commodity group
(as per cent)

Commodity group

Price changes in March 2020, compared to

March 2019

December 2019

February 2020

Total

1.4

0.8

0.3

food

3.5

2.8

0.1

alcohol, tobacco

0.0

1.4

0.7

clothing, footwear

2.0

1.5

9.9

housing

-0.1

-0.4

-0.2

furnishings

1.4

0.4

-0.2

health

3.5

1.7

0.0

transport

-1.1

-2.4

-2.6

communication

1.2

1.0

-0.1

recreation, culture

1.9

1.8

1.6

education

-0.5

0.1

0.0

restaurants, hotels

3.6

1.1

0.1

miscellaneous

1.0

1.0

-0.6



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

Compared to February 2020, in March 2020 the average level of consumer prices rose by 0.3%. Prices of goods increased by 0.3% and prices of services by 0.2%. The greatest upward pressures on the price changes were put by clothing and footwear, as well as goods and services related to recreation and culture. Alcoholic beverages and tobacco products, as well as food and non-alcoholic beverages has significant influence on the price upturn, however due to lower rise in excise duty and seasonal factors prices changes were smaller than usual. During the month, the most significant downward effect was caused by goods and services related to transport.




Over the month, prices of food and non-alcoholic beverages grew by 0.1%. Prices of bread (rise of 2.9%) had the strongest upward influence on the average price level within the group. Increase was registered in prices of chocolate (of 4.9%), pork (2.3%), eggs (4.2%), dried, salted or smoked meat (1.0%), coffee (2.3%), breakfast cereals (6.1%), and butter (2.8%). Reduction, in turn, was recorded in prices of fresh vegetables and fresh fruit (of 3.7% and 2.6%, respectively). Decline over the month was observed also in prices of poultry (of 2.0 %), olive oil (10.6%), milk (2.1%), and potatoes (4.3%).

The average level of alcoholic beverage and tobacco product prices went up by 0.7% which was mainly due the influence exerted by rise of beer and spirit prices. As of 1 March 2020, excise duty on alcoholic beverages was increased.


Growth in prices of clothing and footwear typical for March was influenced by the fact that goods of the new season entered the market. Prices of garments increased by 7.9% and prices of footwear by 15.8%.


Prices of goods and services related to transport dropped on average by 2.6%. Prices of fuels for transport reduced by 7.0%, of which prices of diesel by 8.3%, of petrol by 5.8%, and of auto gas by 4.5%.


Prices of goods and services related to recreation and culture grew by 1.6%. Rise was recorded in the average level of pet food, fiction book and flower prices.


Among other commodity groups, the most significant growth was recorded in prices of dental services as well as restaurant and hotel services. Reduction, in turn, was observed in the average level of prices of household cleaning and maintenance products, solid fuels, motor vehicle insurance, articles for personal hygiene and beauty products, bundled telecommunication services, as well as rentals for housing.
 

In March, Covid-19 restrictions in Latviaconsidering price registration schedule, only had influence on the package holiday and passenger transport by sea sub-classesRegardless the fact that index calculation in the sub-classes is based on smaller number of prices than usual and thus can only reflect trends in price changes taking place in the first half of March, the total consumer price index meets the quality requirements and is considered to be reliable.







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