On consumer price changes in July 2010

09.08.2010

Compared to June 2010, the average consumer price level in July 2010 increased by 0.2%. The average prices of goods increased by 0.2%, but prices of services - by 0.1%.

Price growth of food, goods and services related to housing as well as price decrease of clothing and footwear had the major impact on consumer price changes in July.

Milk and dairy products recorded a rise of 4.1%, while cheese – of 3.5%, partially due to the effects of growth of production costs and end of the special offers. Under seasonal influence prices of vegetables on average rose by 1.1%. Due to the end of special offers prices grew for bread, meat products, tea and coffee, while bakery products, sweets, fresh meat and eggs recorded price fall.

The major contributor to the increase in housing was natural gas (+31.5%), with smaller contribution from liquefied gas. Meantime prices of solid fuels recorded a slight drop.

End of special offers impacted the price increase for non-durable household goods, individual care goods, pet food and books. The prices increases were recorded also for accommodation and rehabilitation services, package holidays, maintenance and repair of personal transport equipment, fuels.

Major downward impact in July came from price decrease for clothing (-4.9%) and footwear (-4.8%). The significant downward pressures to the overall price change came also from telecommunications, maintenance and repair of dwelling, out-patient, recreational, sports and cultural services, as well as of motor cars, household utensils and flowers.

Compared to July of previous year, consumer prices have decreased by 0.6%, of which prices of goods have increased by 1.1%, but prices of services – decreased by 4.8%.

The annual average rate of change in July 2010 was -1.6%.


Consumer price change by commodity groups, %:

Commodity group

July 2009 - July 2010

December 2009 - July 2010

June 2010 - July 2010

Total

-0.6

2.0

0.2

Food and non-alcoholic beverages

0.1

4.7

0.8

Alcoholic beverages and tobacco

-0.4

1.8

0.1

Clothing and footwear

-5.9

-7.9

-4.5

Housing, water, electricity, gas and fuels

4.1

8.0

1.3

Furnishing, household equipment and operation

-5.0

-2.1

0.3

Health care

-1.2

-1.1

0.3

Transport

3.3

5.3

0.3

Communication

-5.5

-3.0

-0.3

Recreation and culture

-4.8

-2.1

-0.3

Education

7.0

-0.7

0.0

Hotels, cafés and restaurants

-6.0

-1.7

0.2

Miscellaneous goods and services

-4.4

-1.2

0.5


 

Sub-indices with most important impacts:

June 2010 - July 2010

Impact (percentage points)

Gas

+0.22

Milk, cheese and eggs

+0.14

Vegetables, potatoes

+0.03

Package holidays

+0.03

Recreational and cultural services

-0.03

Fresh meat

-0.04

Footwear

-0.08

Clothing

-0.17


 

July 2009 - July 2010

Impact (percentage points)

Heat energy

+0.88

Fuels

+0.60

Vegetables, potatoes

+0.58

Gas

+0.18

Telecommunication services

-0.24

Clothing

-0.28

Catering services

-0.29

Meat and meat products

-0.38


 

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