Consumer price change

09.01.2007

Consumer prices in 2006 [1] increased by 6.8% (6.4% for goods and 7.9% for services).

The annual average consumer price increase in 2006 [2] was 6.5% (6.5% for goods and 6.6% for services).

Rises in the prices of food products and dwelling maintenance-related goods and services had the greatest impact on the consumer price increase in 2006. There were price increases during the year for heating, gas, solid fuel, waste collection, water supply, sewerage services and electricity.

Prices for nearly all food products continued to go up, especially prices for vegetables, bread, confectionery, grain mill products, cooking oil and fats, milk products, eggs, fruit, fresh meat and non-alcoholic beverages. Alcoholic beverages have become considerably more expensive.

Compared to December 2005, prices for many services have increased substantially, especially the prices of catering, dwelling maintenance and repair, recreation and cultural activities, education, healthcare, passenger transportation by road as well as hairdressers` and personal grooming services, dry cleaning, repair, tourism, insurance, post and notary services.

The prices of telecommunications services last year continued to go down. The most noteworthy fall was in the prices of mobile telephone and Internet services. Automotive fuel became cheaper. Prices decreased for TV, audio and visual equipment, computer equipment, photographic equipment, sports and recreation accessories and household equipment.

The administratively regulated prices increased by 11.4% in 2006.

Compared to November, consumer prices in December rose by 0.3% (0.2% for goods and 0.6% for services).

Over the month the rise in the prices of food and catering services as well as the fall in the prices of telecommunications services had the greatest impact on consumer price changes.

The increase in prices was for vegetables, bread and grain mill products, fresh meat, cheese and eggs.

After a price decrease in several months, fuel in December became more expensive.

There were rises in the prices of dwelling maintenance and repair, recreation and culture, healthcare, passenger transportation by road and in the prices of services of the personal grooming service establishments.

Due to special offers there were price decreases for telecommunications services and postal services as well as for alcoholic beverages and household appliances.

Consumer price change by commodity groups, %:

Commodity group

December 2005 -
December 2006

November 2006 -
December 2006

Total

6.8

0.3

Food

9.5

0.8

Alcoholic beverages and tobacco

7.9

-0.3

Clothing and footwear

1.7

-0.4

Housing, water, electricity, gas and fuels

14.0

0.3

Furnishing, household equipment and operation

3.7

-0.1

Health care

6.0

-0.2

Transport

1.8

0.5

Communication

-4.8

-1.5

Recreation and culture

2.6

0.5

Education

10.9

0.1

Hotels and public catering

12.0

1.0

Miscellaneous goods and services

7.2

0.5

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[1]Price changes between December 2006 and December 2005
[2]Price changes between the average of latest 12 months and average of previous 12 months

For further information:
Consumer Price Indices Section
Central Statistical Bureau of Latvia
Oskars Alksnis 371-7366865