Analytics, Inflation, Latvia, Retail, Statistics

International Internet Magazine. Baltic States news & analytics Tuesday, 07.12.2021, 17:26

Consumer prices in Latvia down 0.7% in October y-o-y

Nataļja Dubkova Consumer Price Indices Section, 09.11.2020.Print version
The latest data of the Central Statistical Bureau (CSB) show that in October 2020, compared to October 2019, the average level of consumer prices* decreased by 0.7%. Prices of goods fell by 1.6%, while prices of services rose by 1.5%.



Compared to October 2019, in October 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, as well as the rise in prices of food and non-alcoholic beverages, goods and services related to recreation and culture, health care, alcoholic beverages and tobacco products, restaurant and hotel services.



 

Over the year, prices within the group of food and non-alcoholic beverages increased by 1.1%, which was influenced by the increase of the price level for dried, salted or smoked meat (up by 5.4%), and meat preparations (up by 3.2%). Prices also increased for fresh fruit (8.1%), bakery products (2.7%), breakfast cereals (15.7%), buckwheat (21.6%), ice cream (6.2%), coffee (2.0%) and milk (2.7%). Decline, in turn, was registered in prices of poultry (of 5.7%), potatoes (12.3%), fresh vegetables (3.9%) and butter (6.9%).


The average level of prices of alcoholic beverages and tobacco products increased by 1.6%. Prices of tobacco products rose on average by 3.1%. Prices of alcoholic beverages increased by 0.6%, mainly due to higher prices of spirits. In turn, the prices of beer dropped.


Prices of goods and services related to housing dropped by 4.8%. 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 2.7%, 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 in prices of reimbursable medical products.


Prices of goods and services related to transport declined by 5.5%, which was affected by the drop in prices of fuels for transport by 14.0%. Diesel was 16.9% cheaper. The prices of petrol decreased by 10.9%, and prices of auto gas by 8.9%. During the year, passenger transport by air became cheaper, while prices for passenger transport by road, and passenger transport by sea, increased.


The price level for cultural and recreational goods and services increased by 2.5%. Over the year, the price level for cultural services, flowers, recreational and sporting services, and personal computers increased.


The average level of restaurant and hotel service prices increased by 2.3%. This 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 5.1%. In turn, prices of hotel services decreased by 11.9% over the year.


Among other commodity groups, the most notable decline in prices was for motor vehicle insurance, while prices for telecommunication services increased.


The average level of consumer prices remained unchanged during the month

In October 2020, compared to September 2020, the average level of consumer prices remained unchanged. The average price level for goods increased by 0.2%, while the average price level for services decreased by 0.5%. The greatest pressure on the price changes was put by the drop in prices of goods and services related to transport, goods and services related to housing, goods and services related to recreation and culture, restaurant and hotel services, as well as the rise in prices of clothing and footwear, alcoholic beverages and tobacco products.






During the month, prices of food and non-alcoholic beverages decreased on average by 0.1%. The most significant pressure on the average price level decline in the group was due to the discounts and seasonal factors corresponding to the price drop of fresh fruit (of 5.8%), mainly of apples, bananas and lemons. The decline in prices was registered for bread (2.1%), potatoes (6.9%), coffee (1.5%), yoghurt (2.4%) as well as fruit and vegetable juices (2.1 %). In turn, the prices of fresh vegetables (up by 12.1%), poultry (2.0%) and bakery products (0.9%) increased.


The average price level for alcoholic beverages and tobacco products increased by 0.5%, mainly due to the rise in prices for beer and spirits with the end of the sales. The average price level of tobacco products remained unchanged.


Prices of footwear and clothing increased on average by 2.9%. While the new season’s items were still entering the market, prices of garments increased by 5.0%. In turn, prices of footwear decreased by 1.8%.


The average price level of goods and services related to housing fell by 0.3%, which was affected by the decrease of heat energy tariffs in Riga and Daugavpils, lowering the average level of heat energy prices by 0.8%. Rentals for housing also became cheaper (1.2%).


Prices of goods and services related to transport dropped by 1.1%. Prices of fuels for transport decreased by 2.6%, mainly for diesel – by 3.8%. Petrol prices decreased by 1.6 %, and auto gas prices increased (up by 0.6%). Prices also decreased for passenger transport by air, while the prices of spare parts and accessories for personal transport equipment increased.

Prices of cultural and recreational goods and services decreased on average by 0.4%, which was mainly affected by the drop in prices of package holidays (7.5%).


The prices of restaurant and hotel services decreased by 0.5%, which was mainly influenced by drop in prices of hotel services (of 6.5%).


In other commodity groups, the most significant fall in prices was for articles for personal hygiene and beauty products, and motor vehicle insurance. In turn, prices of household furniture and furnishings increased.


Price changes by commodity group
(as per cent)

Groups

Price changes in October 2020, compared to:

October 2019

December 2019

September 2020

Total

-0.7

-0.2

0.0

food

1.1

0.7

-0.1

alcohol, tobacco

1.6

2.4

0.5

clothing, footwear

-0.4

4.6

2.9

housing

-4.8

-4.3

-0.3

furnishings

0.4

2.3

0.8

health

2.7

2.7

0.3

transport

-5.5

-6.0

-1.1

communication

1.3

1.5

0.2

recreation, culture

2.5

3.7

-0.4

education

2.1

2.1

0.0

restaurants, hotels

2.3

2.4

-0.5

miscellaneous

-0.8

-0.2

-0.5

 

Compared to 2015, consumer prices in October 2020 were 8.6% higher. Prices of goods rose by 6.2%, while prices of services - by 14.5%.




Information on consumer price changes in November 2020 will be published on 8 December.

 

*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.

 


COVID-19 influence on consumer price index in October

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


Significant influence of Covid-19 remained in one subclass of ECOICOP (European Classification of Individual Consumption according to Purpose) - Package holidays (share of imputation 63 %).


 Imputations were calculated by the method mentioned below in accordance with recommendations of Eurostat for compilation of indices under the impact of Covid-19:

Imputation with the annual rate of change of all reliable price indices

(In October 2020 annual consumer price index of all "reliable” indices constituted 99.3);

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

 






Search site