Analytics, Inflation, Latvia, Markets and Companies

The greatest downward pressures on the price changes in June were put by transport, alcoholic beverages and tobacco, clothing and footwear, and household equipment, while the strongest upward pressures – by food products and recreation and culture services.

 The overall level of consumer prices within the food commodity group was influenced by the end of special offers on cereals (+0.8%), meat (+2.0%), and butter (+1.7%). Affected by the seasonal price growth, entry of the new harvest into the market, as well as cease of promotions in some chain stores the prices of vegetables increased by 6.5%, whereas pries of fruit grew by 1.7%.

 Influenced by special offers a reduction was recorded in prices of bread (-1.4%), sausages and smoked meat (-1.3%), fresh fish (-2.5%), cheese (-2.1%), as well as tea and coffee (-3.4%). Prices of eggs diminished by 4.7%.

 Affected by cease of discounts the prices of alcoholic beverages decreased on average by 1.7%. Moreover, main reduction was observed in vine and beer prices (-2.3% and –4.0%, respectively). Various sales caused decrease in the clothing (-0.2%) and footwear (-2.1%) prices.

 Special offers on furniture and furnishings (-1.5%), carpets and floor coverings (-0.1%), household appliances (-0.8%), tools and equipment (-1.3%), as well as small electric appliances (-1.0%) resulted in the reduction of housing equipment prices.

 Prices of fuel dropped on average by 3.6%, of which prices of petrol reduced by 3.8% and prices of diesel – by 3.7%.

 Rise of 7.8% was recorded in the package holiday prices and 2.5% – in the insurance connected with transport prices.

Compared to June of the previous year, consumer prices increased by 1.9%. The average price level for goods increased by 1.8%, but for services – by 2.2%.

 The annual average rate of change in June 2012 was 3.6%.

Consumer price change by commodity groups, %:

Sub-indices with most important impacts: