Analytics, Latvia, Retail, Statistics

International Internet Magazine. Baltic States news & analytics Thursday, 06.10.2022, 10:45

Latvia: The average level of consumer prices reduced by 0.3% over the year

Nataļja Dubkova Consumer Price Indices Section, 08.10.2020.Print version
The latest data of the Central Statistical Bureau (CSB) show that in September 2020, compared to September 2019, the average level of consumer price* decreased by 0.3%. Prices of goods fell by 1.1%, while prices of services rose by 1.7%.



Compared to September 2019, in September 2020 the average level of consumer prices was mainly influenced by the drop in prices of goods and services related to housing, goods and services related to transport, miscellaneous goods and services, as well as rise in prices of food and non-alcoholic beverages, goods and services related to recreation and culture, health care, restaurant and hotel services.



Over the year, prices within the group of food and non-alcoholic beverages increased by 2.2%, which was influenced by the increase of the price level for fresh fruit (up by 23.0%), mainly apples and oranges. Prices also increased for dried, salted or smoked meat (of 6.1%), as well as meat products (3.7%).  Coffee (rise of 3.7%), bakery products (2.6%), bread (1.9%), buckwheat (21.7%) and breakfast cereals (12.6%) became more expensive. Decline, in turn, was registered in prices of poultry (of 5.8%), potatoes (12.2%), fresh vegetables (2.7%) and chocolate (1.0%). 


Prices of goods and services related to housing dropped by 4.3%.  The fall in prices was mainly due to cheaper heat energy, natural gas, electricity, solid fuels and rentals for housing. Maintenance charges in multi-occupied buildings, as well as services for the maintenance and repairs of the dwelling became more expensive.


In the health care group, the average level of prices increased by 2.6%, which was mainly influenced by the increase in prices of dental services, prices in general medical practice, as well as prices in medical specialist practice. The fall was registered in prices of pharmaceutical products, mainly reimbursable medical products.


Prices of goods and services related to transport declined by 4.3%, which was affected by the drop in prices of fuels by 11.6%. Diesel was 13.3% cheaper. Prices of petrol and auto gas decreased by 9.7%. During the year, passenger transport by air became cheaper, while prices for passenger transport by road increased.


Goods and services related to recreation and culture became more expensive by 2.3%. Over the year price level increased for cultural services, recreational and sporting services, flowers and personal computers.


The average level of restaurant and hotel service prices increased by 2.4%.  Price rise was mainly affected by catering services, as the average level of restaurant and café service prices increased by 2.6% and that of canteen services by 5.2%. In turn, prices of hotel services decreased by 17.3% over the year.


In the group of miscellaneous goods and services prices decreased by 1.6%, which was mainly due to the fall in prices for motor vehicle insurance, articles for personal hygiene and beauty products. Hairdressing salons and personal grooming establishment services became more expensive.


Among other commodity groups, the most notable decline in prices was for beer and clothing, while prices for tobacco products increased.


The average consumer price level remained unchanged during the month

In September 2020, compared to August 2020, the average level of consumer prices remained unchanged. The average price level for goods increased by 0.1%, while for services - decreased by 0.1%.






The most greatest pressure on the price changes was put by the drop in prices of food and non-alcoholic beverages, goods and services related to transport, restaurant and hotel services, as well as the rise of prices in education group, clothing and footwear, goods and services related to recreation and culture.




Compared to 2015, consumer prices in September 2020 were 8.7% higher. Prices of goods rose by 6.1%, while prices of services - by 15.1%.


COVID-19 influence on consumer price index in September

In September, the total share of Covid-19-related imputations fell to 0.5 %, which is 0.6 % of total household consumption expenditure.


Significant influence of Covid-19 remained in two subclasses of ECOICOP (European Classification of Individual Consumption) - Passenger transport by sea (share of imputation ( 100 %); Package holidays (share of imputation 63 %).  Imputations were calculated by the methods mentioned below in accordance with recommendations of Eurostat for compilation of indices under the impact of Covid-19:

  1. Imputation with the annual rate of change of all reliable price indices
    (In September 2020 annual consumer price index of all "reliable” indices constituted 99.8);
  2. Imputation based on available prices for a particular good or service.

Indices with significant number of imputations (> 50 %) caused by Covid-19 and thus having lower quality in the CSB database are indicated with "u."






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