On consumer price changes in August 2010

08.09.2010

Compared to July 2010, the average consumer price level in August 2010 decreased by 0.7%. The average prices of goods decreased by 1.0%, but the average prices of services didn’t change.

Price drop of food, services and goods related to transport, as well as price growth of goods and services related to housing had the major impact on consumer price changes in August.

Under seasonal influence prices of vegetables on average dropped by 22.8% having the biggest impact on headline rate of inflation. The price drop for confectionery, meat products and fish was due to special offers.

Meanwhile prices continued to grow for dairy products and cheese – by 2.3% and 3.9% respectively. More expensive became fruit, fresh meat, fats and oils.

The major contribution to the price decrease in transport group came from fuel, which prices dropped by 1.1% (of which prices of petrol fell by 1.2% and prices of diesel - by 0.9%). Prices of cars and spare parts as well as bicycles also decreased.

Due to sales campaigns and seasonal discounts prices decreased for individual care goods, clothing and footwear, furniture and furnishings, household appliances, non-durable household goods and alcoholic beverages.

The major upward impact to the price increase in housing group came from rent and services related to housing as well as solid fuels.

Compared to August of previous year, consumer prices have decreased by 0.3%, of which prices of goods have increased by 1.4%, while prices of services – decreased by 4.4%.

The annual average rate of change in August 2010 was -1.8%.

Consumer price change by commodity groups, %:

Commodity group

August 2009 - August 2010

December 2009 - August 2010

July 2010 - August 2010

Total

-0.3

1.3

-0.7

Food and non-alcoholic beverages

1.1

2.9

-1.8

Alcoholic beverages and tobacco

-0.5

1.2

-0.6

Clothing and footwear

-5.4

-8.8

-1.1

Housing, water, electricity, gas and fuels

4.9

8.3

0.3

Furnishing, household equipment and operation

-4.5

-3.2

-1.1

Health care

-1.4

-0.9

0.2

Transport

2.5

4.6

-0.6

Communication

-5.3

-3.0

0.0

Recreation and culture

-4.2

-2.3

-0.2

Education

7.2

-0.7

0.0

Hotels, cafés and restaurants

-5.7

-1.8

-0.1

Miscellaneous goods and services

-4.4

-2.6

-1.4

Sub-indices with most important impacts:

July 2010 - August 2010

Impact (percentage points)

Milk, cheese and eggs

+0.11

Fruit

+0.04

Water supply and miscellaneous services relating to the dwelling

+0.04

Non-durable household goods

-0.03

Alcoholic beverages

-0.05

Fuels

-0.07

Personal care products

-0.09

Vegetables

-0.62


 

 

 

 

 

 

 

 

 

August 2009 - August 2010

Impact (percentage points)

Heat energy

+0.90

Fuels

+0.47

Milk, cheese and eggs

+0.29

Vegetables

+0.28

Fruit

+0.26

Clothing

-0.24

Catering services

-0.28

Meat and meat products

-0.33

 

 

 

 

 

 

 

 

 

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