On consumer price changes in August 2011

08.09.2011

Compared to July 2011, the average consumer price level in August 2011 decreased by 0.3%. Prices of goods fell by 0.6%, but prices of services – rose by 0.2%.

The largest downward pressures to the price changes came from food, but upward – from goods and services related to health and housing.

In the food commodity group the major lowering contributors to the average price level were fresh vegetables and fruit, prices of which fell due to the season by 20.9% and 7.6% respectively. Due to the sales campaigns the prices of bread and cereal products (-0.7%), cheese (-1.9%), eggs (-0.7%) and soft drinks (-0.5%) have decreased. Whereas with the end of several sales campaigns, the prices for meat and meat products (+0.6%), milk and dairy products (+0.4%), sweets (+0.9%) and tea, coffee (+0.3%) have increased.

The average price level of health care goods and services increased by 0.9%, which was affected by the increase in the patient’s contribution to compensated medicines.  With the end of several sales campaigns, prices for food supplements increased, while there was a decrease in prices of services of doctors - specialists and sanatoriums.

In the housing group heat energy had the largest upward impact, as the tariffs rose by 1.3%. The prices also increased for solid fuel (+1.4%) and rent (+1.6%). 

Due to the sales campaigns prices decreased for footwear, household appliances, audio, video, photo and data processing equipment, cleaning and maintenance products and stationery. With the end of several sales campaigns, there was a price increase in wearing apparel and sports and recreational services. Prices grew also for tourism, tobacco products, pet food, insurance services, maintenance and repair of motor vehicles.

Compared to August of the previous year, consumer prices increased by 4.7%. The average price level for goods increased by 6.1%, but for services – by 1.0%.

The annual average rate of change in August 2011 was 3.4%.

Consumer price change by commodity groups, %

Commodity group

August 2010 -
August 2011

December 2010 -
August 2011

July 2011 -
August 2011

Total

4.7

3.4

-0.3

Food and non-alcoholic beverages

8.5

3.3

-2.0

Alcoholic beverages and tobacco

4.2

4.0

0.3

Clothing and footwear

4.9

-1.9

0.3

Housing, water, electricity, gas and other fuels

6.1

8.2

0.5

Household goods and services

-0.4

0.0

-0.3

Health care

-2.7

1.0

0.9

Transport

8.5

5.9

-0.2

Communications

-1.7

-1.4

0.0

Recreation and culture

-1.6

1.1

0.1

Education

1.5

-0.1

-0.1

Hotels, cafes and restaurants

2.0

2.4

0.0

Miscellaneous goods and services

1.9

2.6

0.6

Sub-indices with most important impacts

July 2011 - August 2011

Impact (percentage points)

Clothing

+0.08

Heat energy

+0.06

Pharmaceutical products

+0.06

Meat

+0.04

Fuel

-0.04

Footwear

-0.07

Fruit

-0.11

Vegetables

-0.41

 

August 2010 - August 2011

Impact (percentage points)

Fuel

+1.06

Electricity

+0.81

Milk, cheese and eggs

+0.59

Bread and cereals

+0.42

Meat

+0.36

Non-alcoholic beverages

+0.34

Sugar, honey and confectionery

+0.22

Pharmaceutical products

-0.19

 

For further information:
Consumer Price Indices Section
Central Statistical Bureau of Latvia
Inga Kunstvere 371-67366852