On consumer price changes in August 2009

08.09.2009

Compared to July 2009, the average consumer price level in August 2009 decreased by 1.0%. The average prices of goods decreased by 1.3%, but prices of services - by 0.4%.

The decrease of the prices of fresh vegetables and fruit, clothing, as well price increase of fuel had the greatest impact on consumer price changes in August 2009.

Seasonal price decrease of vegetables (-17.9%) and fruit (-13.8%) had the biggest downward impact on headline rate of consumer price changes.

Further downward effect came from continuation of seasonal sales of clothing and footwear (-1.6%).

Special offers and sales contributed price decrease of various goods and services, especially of beer, fresh meat, dairy products, sugar, fresh fish, bread, non-alcoholic beverages, cleaning and maintenance products, as well as of individual care goods, furniture and floor coverings, spare parts for cars, materials for maintenance and repair of the dwelling and household appliances.

Responding to VAT decrease, prices went down for books (by 7.6%) and solid fuels (by 2.9%).

The major upward impact on headline rate of consumer price changes came from price increase of fuels on average by 1.4%.

During the month liquefied gas, some financial services, airline tickets became more expensive as well. Meanwhile, due to the end of special offers, prices increased for pharmaceutical goods, TV, audio and visual equipment, and some food products.

Compared to August of previous year, consumer prices have increased by 1.8% (down from 2.5% in July), of which prices of goods increased by 0.8%, but of services – by 4.5%.

The annual average rate of change in August 2009 was 7.9%.

Consumer price change by commodity groups, %:

Commodity group

August 2008 -
August 2009

December 2008 -
August 2009

July 2009 -
August 2009

Total

1.8

0.4

-1.0

Food

-3.3

-4.6

-2.7

Alcoholic beverages and tobacco

21.0

21.8

-0.4

Clothing and footwear

-5.7

-11.5

-1.6

Housing, water, electricity, gas and fuels

3.4

-6.1

-0.4

Furnishing, household equipment and operation

-0.8

-1.9

-1.7

Health care

18.7

17.2

0.4

Transport

-4.8

5.1

0.2

Communication

-0.3

-0.5

-0.2

Recreation and culture

3.7

1.9

-0.8

Education

21.6

2.1

-0.3

Hotels and public catering

-0.2

-2.6

-0.3

Miscellaneous goods and services

3.1

1.9

-1.5

Sub-indices with most important impacts:

July 2009 -
August 2009

Impact (percentage points)

Fuels

+0.07

Pharmaceutical products

+0.03

Motor cars

-0.03

Alcoholic beverages

-0.04

Non-durable household goods

-0.06

Clothing

-0.07

Fruit

-0.21

Vegetables, potatoes

-0.32

August 2008 -
August 2009

Impact (percentage points)

Tobacco products

+0.91

Alcoholic beverages

+0.62

Water supply and miscellaneous services relating the dwelling

+0.47

Pharmaceutical products

+0.41

Heat energy

+0.32

Fruit

-0.33

Fuels

-0.40

Milk, cheese and eggs

-0.45

For further information:

Consumer Price Indices Section
Central Statistical Bureau of Latvia
Oskars Alksnis 371-67366865