Annual consumer price rate decreases

08.07.2008

Compared to May 2008, the average consumer price level in June 2008 rose by 0.7%. Both for goods and services the average price level increased by 0.7%.

In June the price growth of fuel (+4.7%), fresh meat (+5.9%), vegetables and potatoes (+3.0%), as well as the price decrease of footwear (-5.5%) had the major impact on the consumer price changes.

Price increase was recorded also for cereal products, especially rice, non-alcoholic beverages, sweets, cheese, oil and fats and alcoholic beverages, especially for beer.

Heat energy, dwelling maintenance, pharmaceutical products and airline tickets became more expensive in June.

Prices continued to grow in service sector: catering, health care, package holidays, financial, personal care establishments, repair of household equipment and computer equipment, cleaning of clothing and footwear repair, as well as services related to maintenance of personal transport vehicles became more expensive.

Price decrease of footwear was caused due to seasonal sales. Prices decreased also for cars, household equipment, TV, audio, visual, photographic and computer equipment, equipment for sport and open-air recreation, as well as tools and equipment for house and garden, seeds, plants and flowers, reimbursed medicines, glassware and tableware.

Compared to June of previous year, the consumer prices have increased by 17.7%, of which prices for goods increased by 17.7%, but for services – by 17.6%.

Compared to previous 12 months, the average consumer price level has increased by 14.6%.

In the 1st half of 2008 the consumer prices grew by 9.1% (June of this year in comparison with December 2007).

Consumer price change by commodity groups, %

Commodity group

June 2007 -
June 2008

December 2007 -
June 2008

May 2008 -
June 2008

Total

17.7

9.1

0.7

Food

21.0

9.4

1.4

Alcoholic beverages and tobacco

44.4

27.9

0.9

Clothing and footwear

1.0

-3.4

-1.8

Housing, water, electricity, gas and fuels

32.9

18.0

0.8

Furnishing, household equipment and operation

4.3

2.5

-0.2

Health care

14.5

9.2

0.7

Transport

12.7

8.4

1.7

Communication

-5.2

-3.4

-0.4

Recreation and culture

9.1

5.0

0.1

Education

20.5

2.7

0.0

Hotels and public catering

23.8

10.8

1.0

Miscellaneous goods and services

13.1

6.2

0.3

Prepared by Price Indices Section
Tel. 67366865
Oskars Alksnis