**Compared with the 1st quarter of 2006**, construction costs in Latvia **in the 1st quarter of 2007** rose on average by 30.4%, according to the Central Statistical Bureau. The most rapid rise (by 52.8%) could be seen in the labour remuneration of workers. The maintenance and operational costs of machinery and equipment increased by 33.3% and the prices of construction materials rose by 18.1%. The most notable increases in construction costs were 40.5% in the renovation of office buildings, 38.2% in the renovation and construction of education, healthcare and sports buildings. Construction costs in the construction of residential buildings increased by 29.7%, in the reconstruction and construction of industrial, agricultural and trade buildings by 28.3%, in the construction of transport facilities by 28.2% and of underground main pipelines by 22.1%. It must be mentioned, that so noticeable increase of construction costs within a year was not seen since 4^{th} quarter of 1995. Then construction costs, comparing with 4^{th} quarter of 1994, rose by 31.8%.

**Compared with the 4 ^{th} quarter of 2006**, construction costs

**in the 1**increased on average by 6.5%. There were increases of 8.0% in the labour remuneration of workers, 7.4% in the maintenance and operational costs of machinery and equipment and 5.0% in the prices of construction materials. The highest cost increases were in the renovation and construction of education, healthcare and sports buildings (by 13.0%). In the renovation of office buildings and in the construction of transport facilities construction costs increased by 6.7%. In the construction of residential buildings construction costs rose by 5,9%, in the reconstruction and construction of industrial, agricultural and trade buildings by 5.3% and in construction of underground main pipelines by 2.6%.

^{st}quarter of this yearIn the 1st quarter of 2007, as in previous years, weights, used in construction cost index calculation, are updated. As such is used value of construction done on own account, as base to compare price using average prices of 2005. This year in the calculation of construction cost index are included three objects: preschool establishment, sports complex and hotel.

Prepared by Price Statistics Department

Producer Price Indices Section

tel. 7366813

Aleksandrs Gržibovskis