On consumer price changes in 2010

10.01.2011

The consumer prices in 20101) have increased by 2.5%, of which prices for goods increased by 4.3%, but for services – decreased by 2.1%.

The largest upward pressure to the price changes in 2010 came from food and goods and services connected with housing and transport, but downward – from goods and services connected with recreation, culture and medicine.

Prices for food and non-alcoholic beverages on average rose by 8.0% which was mostly influenced by the price growth of fresh vegetables by 36.8%, fruit – by 20.1%, dairy products - by 13.2%, as well as bread and cereal products by 7.6%.

Prices for housing on average increased by 6.2% which was mainly influenced by the price growth for heat energy – by 19.4%, natural gas supply – by 16.3% and firewood – by 10.6%. Prices for water supply, sewerage, refuse collection and rents also increased. In turn, prices for goods and services connected with maintenance and repair of dwelling went down by 5.9% on average during the year.

The price growth in transport group by 7.2% was mostly influenced by the rise in prices of fuels by 15.3%, including petrol by 14.2%, but diesel - by 19.9%. The prices for passenger transport services increased by 4.1% while prices of airline tickets didn’t change. Transport purchase became cheaper by 3.1%.

Price decrease by 4.4% in health group was mainly determined by the decrease of prices net of reimbursement for state paid services and pharmaceutical goods. Prices also decreased for non-reimbursed medicine and therapeutical goods.

The average price level in recreation and culture group on average decreased by 4.8%. TV, audio, video, photo and data processing and recording equipment became cheaper by 9.0%. Prices also decreased for recreation and sport equipment, toys and pet food. Recreation and sport services became cheaper by 8.2%, cultural services - by 5.7% and package holidays – by 12.4%.

Other most essential price decreases were recorded for insurance – by 12.6%, personal care institution’s services – by 4.6%, telecommunication services - by 3.0% and catering - by 2.2%. Prices for personal care goods decreased by 3.5% and clothing became by 4.9% cheaper.

Administered prices in 2010 grew by 5.4%. Average level of non-administered prices increased by 2.0%.

The annual average consumer price decrease in 2010 was 1.1%.2)

Compared to November 2010, in December 2010 the consumer prices increased by 0.1% (for goods the average price level increased by 0.2%, but for services - didn’t change).

The greatest impact to the consumer price changes in December came from the price growth for food and transport, as well as the price decrease for health care.
Due to seasonal factors prices grew for fruit (+8.6%) and vegetables (+7.8%). Prices rose for bread and cereal products (+0.9%), non-alcoholic beverages (+1.9%), fish (+2.6%).

Fuels became more expensive on average by 4.0%, from which prices for petrol rose by 4.1%, but for diesel – by 3.9%.

The price decrease for health care was mainly influenced by the decrease of prices for pharmaceutical products by 5.4% on average, especially for reimbursed medicine.

Influenced by discounts and sales the prices for footwear decreased by 2.5%, but for clothing – by 2.4%.

In December non-durable household goods, personal care goods, recreational and sport services, package holidays as well as audio, video, photo and data processing equipment and sports and recreation equipment became cheaper.

Consumer price change by commodity groups, %:

Commodity group

December 2009 - December 2010

November 2010 - December 2010

Total

2.5

0.1

Food

8.0

1.3

Alcoholic beverages and tobacco

1.5

0.1

Clothing and footwear

-2.4

-2.3

Housing, water, electricity, gas and fuels

6.2

0.0

Furnishing, household equipment and operation

-3.5

-0.3

Health care

-4.4

-3.3

Transport

7.2

2.0

Communication

-3.3

0.1

Recreation and culture

-4.8

-0.3

Education

0.9

0.0

Hotels and public catering

-2.2

0.1

Miscellaneous goods and services

-3.2

-2.0

Sub-indices with most important impacts:

November 2010 - December 2010

Impact (percentage points)

Fuels

+0.25

Fruit

+0.13

Vegetables

+0.12

Bread and cereal products

+0.04

Non-alcoholic beverages

+0.04

Footwear

-0.04

Clothing

-0.09

Pharmaceutical products

-0.20

 

December 2009 - December 2010

Impact (percentage points)

Fuels

+0.87

Heat energy

+0.80

Vegetables

+0.69

Milk, cheese and eggs

+0.47

Bread and cereal products

+0.32

Fruit

+0.28

Clothing

-0.19

Pharmaceutical products

-0.20

 

 

For further information:
Consumer Price Indices Section
Central Statistical Bureau of Latvia
Oskars Alksnis 371-67366865


1) Price changes between December 2010 and December 2009 (annual rate of change)
2) 12-month average rate of change