On consumer price changes in July 2012

08.08.2012

Compared to June 2012 the average consumer price level in July 2012 decreased by 0.5%. The average prices of goods decreased by 0.7%, but of services rose by 0.1%.

The greatest downward pressures on the prices in July were put by price drop for clothing and footwear, food and transport, while price growth for housings, hotels and restaurants had the most important increasing influence.

Price decrease in clothing and footwear group was caused by seasonal discounts. Prices of clothing decreased by 5.9% and for footwear – by 6.3%.

In the food commodity group the largest price drop was recorded for vegetables (-7.3%), meat and meat products (-1.5%), milk and dairy products (-1.1%) and sugar and sweets (-1.1%). In its turn, prices increased for fruit (+2.4%), tea and coffee (+3.0%), as well as bread (+0.6%).

The average price level decreased for fuel (-1.7%) and motor cars (-0.8%). However, prices increased for passenger air transport service (+4.4%).

The price drop for telecommunication services was mainly affected by changes to the Value Added Tax rate, which resulted in cheaper fixed-line telecommunication services (-0.8%), mobile telecommunication services (-0.8%) and internet services (-2.7%).

Price rise was recorded for heat (+4.7%), natural gas (+4.6%) and rent (+1.7%). In its turn, prices decreased for electricity (-0.8%), solid fuel (-0.6%) and other housing utilities (-0.7%).

With the tourist season prices in cafes and restaurants grew by 0.6% and for hotel services – by 3.0%.

In July the Values Added Tax change influenced mostly a part of food and non-durable household goods, motor cars, energy, communication and regulated service prices.

Compared to July of previous year, consumer prices have increased by 1.7%. The average price level for goods increased by 1.6%, but for services - by 2.0%.

The annual average rate of change in July 2012 was 3.4%.

Consumer price change by commodity group, %:

Commodity group

July 2011 -
July 2012

December 2011 -
July 2012

June 2012 -
July 2012

Total

1.7

1.5

-0.5

Food

1.6

2.3

-0.9

Alcoholic beverages and tobacco

2.5

-0.7

0.0

Clothing and footwear

-1.0

-4.7

-5.6

Housing, water, electricity, gas and fuels

5.7

5.6

1.3

Furnishing, household equipment and operation

-1.1

-0.2

-0.2

Health care

0.5

0.2

0.0

Transport

0.9

0.8

-0.7

Communication

-2.1

-1.8

-1.3

Recreation and culture

0.9

1.2

-0.1

Education

-1.8

0.5

0.1

Hotels and public catering

2.5

1.6

0.3

Miscellaneous goods and services

1.5

1.7

-0.6

Sub-indices with most important impacts:

June 2012 -
July 2012

Impact (percentage points)

Heat energy

+0.23

Gas

+0.05

 Telecommunications services

-0.05

Meat and meat products

-0.09

Fuels

-0.10

Footwear

-0.11

Vegetables

-0.17

Clothing

-0.19

 

July 2011 -
July 2012

Impact (percentage points)

Heat energy

+0.69

Tobacco products

+0.19

Gas

+0.17

Milk, cheese and eggs

+0.13

Vegetables

+0.13

Rent

+0.11

Telecommunications services

-0.07

Motor cars

-0.12

 

 

 

 

 

 

 

 

For further information:

Consumer Price Indices Section
Central Statistical Bureau of Latvia

Oskars Alksnis
371-67366865