On consumer price changes in January 2013

08.02.2013

Compared to January of previous year, consumer prices have increased by 0.6%, of which prices for goods increased by 0.7%, but for services – by 0.1%. The annual average rate of change in January 2013 was 2.0%.

The greatest upward pressures on the consumer prices in January 2013, as compared to January 2012, were put by food, whereas drop in communication services, clothing and footwear prices had the most significant downward impact.

Prices of food and non-alcoholic beverages rose on average by 2.9%. The most notable price rise was recorded for vegetables (+13.9%), fresh meat (+5.6%), eggs (+28.1%), fruit (+9.6%), as well as fish and fish products (+2.5%), whereas price reduction was observed for sausages and smoked meat (-1.2%), cheese (-2.7%), and sugar (-3.7%).

Prices of telecommunication devices decreased by 14.4% and telecommunication services - by 6.5%.

Prices of clothing diminished on average by 2.7%, whereas prices of footwear reduced by 3.5%.

The most significant price increases among other consumption groups were recorded for heat energy (+3.7%), rent (+8.2%), other house maintenance services (+3.7%), and tobacco products (+2.0%), whereas prices of passenger cars diminished by 5.6%.

Compared to December 2012 the average consumer price level in January 2013 decreased by 0.2%. During the month the average price level of goods decreased by 0.2%, while the average prices of services remained stable. Reduction of the average price level in January, as compared to December, is rather atypical. Unlike in other years this January did not come with new consumption taxes or higher administered prices that affected the price rise at the beginning of the year.

The greatest downward pressures on the price changes in January were put by clothing and footwear, while the strongest upward pressures by food products.

Within the food commodity group the highest price rises were recorded for vegetables (+6.1%), milk and dairy products (+1.6%), fruit (+2.4%), as well as fish and fish products (+1.7%). In its turn, bread witnessed the most significant price drop (-1.9%).

Affected by seasonal discounts and sales the prices of clothing diminished by 8.4% and prices of footwear decreased by 5.2%.

The highest price reductions among other consumption groups were observed for gas (-3.8%), heat energy (-1.0%), and catering services (-2.1%), whereas the most significant price rises were recorded for services relating to the dwelling (+3.4%), and individual care goods (+2.6%).

It should be noted that CPI covers changes in heat prices and tariffs, while heating bills received by residents reflect also consumed heat that depends on outdoor air temperature, number of days in month and other factors. In compliance with the data of the State Ltd "Latvian Environment, Geology and Meteorology Centre" the mean air temperature in January 2013 comprised - 6.2ºC, and it is 1.6 degrees below the inter-annual average and 1.4 degrees lower than in December 2012.

In 2013, the Consumer Price Index (CPI) weights were revised. They reflect the structure of household expenditure in 2012. The prices of December 2012 are serving as base prices. Starting from January 2013 the year 2010 (2010=100) is used as the base period for the index comparisons. To ensure the continuity of the time series during longer time period the price indices in the Internet database are published also with the base year 2005 (2005=100).

Consumer price change by commodity groups, %:

Commodity group

Weight, %

January 2012 -
January 2013

December 2012 - January 2013

Total

100.0

0.6

-0.2

Food

24.3

2.9

1.0

Alcoholic beverages and tobacco

7.8

1.5

0.2

Clothing and footwear

5.8

-2.9

-7.3

Housing, water, electricity, gas and fuels

16.9

1.9

-0.2

Furnishing, household equipment and operation

4.2

-2.2

0.8

Health care

5.4

1.0

0.4

Transport

13.7

-0.6

0.0

Communication

3.9

-6.7

-0.2

Recreation and culture

7.7

-0.9

-0.4

Education

1.4

-0.9

0.1

Hotels and public catering

4.0

0.7

-0.8

Miscellaneous goods and services

4.9

1.5

1.1

Sub-indices with most important impacts:

December 2012 - January 2013

Impact (percentage points)

Vegetables

+0.13

Other house maintenance services

+0.07

Individual care goods

+0.05

Catering services

-0.04

Heat energy

-0.05

Gas

-0.06

Footwear

-0.09

Clothing

-0.33

January 2012 - January 2013

Impact (percentage points)

Vegetables

+0.27

Heat energy

+0.19

Fruit

+0.14

Meat and meat products

+0.13

 Milk, cheese, eggs

+0.10

Clothing

-0.12

Motor cars

-0.13

Telecommunication services

-0.25

 

More detailed information is available in the CSB data base.

Press release on consumer price changes in February 2013 will be published on 8 March 2013.

Prepared by:
Consumer Price Indices Section
Oskars Alksnis 371-67366865