On consumer price changes in May 2009

08.06.2009

Compared to April 2009, the average consumer price level in May 2009 decreased by 0.5%. The average prices of goods decreased by 0.6%, but prices of services - by 0.4%.

The rise in the prices of fuel, tobacco products and vegetables, as well as price reduction of heat, transport vehicles, fruit and diary products had the major impact on consumer price changes in May.

More specifically, heat energy became less expensive on average by 8.9%, passenger cars - by 1.9%, housing rent - by 4.9%, and catering services – by 0.7%.

Mostly due to the special offers prices decreased for some food products, especially fruit, milk and dairy products, cheese, cereal products, meat and meat products, non-alcoholic beverages, as well as alcoholic beverages, wearing appeal and footwear, products for personal care, audio, video, photo, data processing equipment, domestic appliances, sports and recreational equipment.

Less expensive became also solid fuels, flowers, spare parts and equipment of motor vehicles, services for regular maintenance and repair of dwelling, transport services, recreational and sporting services, services for maintenance and repair of personal transport, services of dry-cleaning and repair of clothing, and domestic services.

During the month prices of fuel increased on average by 4.2%, of which prices of petrol - by 5.0%, and prices of diesel – by 1.7%.

Tobacco products continued to grow (+1.2%) and due to the season prices of vegetables and potatoes on average rose by 1.6%.

The end of special offers forwarded price increase for bread, eggs, fish and fish products, tea, coffee, sweets and non-durable household goods. Prices went up of selected medical and package holiday services.

Compared to May of previous year, consumer prices have increased by 4.7%, of which prices of goods increased by 3.3%, but of services – by 8.4%. Since May of previous year, when consumer price growth rate reached the peak of the recent years (+17.9%), it has dropped down till March 2004 level.

The annual average rate of change in May 2009 was 11.4%.

Consumer price change by commodity groups, %:

Commodity group

May 2008 -
May 2009

December 2008-
May 2009

April 2009 -
May 2009

Total

4.7

2.6

-0.5

Food

1.4

-0.6

-0.3

Alcoholic beverages and tobacco

18.3

17.6

0.4

Clothing and footwear

-4.5

-3.7

-0.9

Housing, water, electricity, gas and fuels

11.5

-0.8

-3.0

Furnishing, household equipment and operation

1.7

0.9

-0.2

Health care

21.8

17.7

0.1

Transport

-3.9

4.3

0.8

Communication

-0.2

0.2

-0.1

Recreation and culture

4.9

3.2

-0.4

Education

22.3

2.3

0.0

Hotels and public catering

4.1

-1.1

-0.6

Miscellaneous goods and services

4.8

1.9

-0.6

Sub-indices with most important impacts:

April 2009 -
May 2009

Impact (percentage points)

Fuels

+0.19

Tobacco products

+0.05

Vegetables, potatoes

+0.03

Rent

-0.04

Milk, cheese and eggs

-0.05

Fruit

-0.05

Motor cars

-0.06

Heat energy

-0.33

May 2008 -
May 2009

Impact (percentage points)

Tobacco products

+0.87

Heat energy

+0.78

Water supply and miscellaneous services relating the dwelling

+0.58

Meat and meat products

+0.50

Alcoholic beverages

+0.46

Pharmaceutical products

+0.42

Milk, cheese and eggs

-0.37

Fuels

-0.58

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