On consumer price changes in October 2009

09.11.2009

Compared to September 2009, the average consumer price level in October 2009 decreased by 0.2%. The average price level for goods didn’t change, but prices of services decreased by 0.7%.

The decrease of the prices of fuel, heat energy and package holidays, as well price increase of vegetables, footwear and clothing had the greatest impact on consumer price changes in October.

Price decrease of fuel (on average by 2.1%) had the biggest downward impact on headline rate of consumer price changes. Prices of heat energy continued to decrease – in October on average by 1.7%. Price decrease of package holidays (on average by 6.2%) also significantly influenced the total rate of change of consumer prices.

Due to sales new cars, bicycles, as well as spare parts of motor vehicles became cheaper. Also prices of mobile telephones, sports and recreational goods, pet food, individual care goods, airline tickets, maintenance and repair of personal transport equipment, car parking, driver’s courses, catering and accommodation services went down.

The seasonal price growth of fresh vegetables (+15.4%) had the major upward impact on headline rate of consumer price changes in October.

The next important upward impact came from another seasonal consumption group - clothing and footwear, which prices increased on average by 0.9% and 3.0% respectively.

Due to the end of the sales campaigns prices of non-durable household goods grew by 2.3%, mainly of cleaning and maintenance products, as well as of furniture and floor coverings. Pharmaceutical goods, toys and flowers as well as financial, recreational, sports and cultural services became more expensive.

Compared to October of previous year, consumer prices have decreased by 0.9%.
The average price level for goods decreased by 1.5%, but prices of services increased by 0.9%. The consumer price index (CPI) has recorded the decrease, compared to the same month of the previous year, for the first time since 1991 when regular CPI compilation was launched.

The annual average rate of change in October 2009 was 5.5%.


Consumer price change by commodity groups, %:

Commodity group

October 2008 -
October 2009

December 2008 -
October 2009

September 2009 -
October 2009

Total

-0.9

0.0

-0.2

Food

-5.3

-5.7

0.2

Alcoholic beverages and tobacco

20.8

21.5

-0.2

Clothing and footwear

-8.4

-4.0

1.5

Housing, water, electricity, gas and fuels

-5.4

-7.3

-0.4

Furnishing, household equipment and operation

-1.8

-1.5

1.0

Health care

17.8

17.0

0.1

Transport

-5.1

2.8

-1.5

Communication

-2.0

-2.6

-0.3

Recreation and culture

1.1

0.3

-0.6

Education

10.4

10.2

-0.1

Hotels and public catering

-4.8

-5.2

-0.6

Miscellaneous goods and services

3.1

2.6

-0.5



Sub-indices with most important impacts:

September 2009 -
October 2009

Impact (percentage points)

Vegetables

+0.11

Footwear

+0.06

Clothing

+0.04

Non-durable household goods

+0.03

Meat and meat products

-0.05

Heat energy

-0.05

Package holidays

-0.06

Fuels

-0.11


October 2008 -
October 2009

Impact (percentage points)

Tobacco products

+0.89

Alcoholic beverages

+0.59

Pharmaceutical products

+0.41

Water supply and miscellaneous services relating to the dwelling

+0.41

Clothing

-0.35

Vegetables, potatoes

-0.39

Heat energy

-0.40

Milk, cheese and eggs

-0.46



For further information:


Consumer Price Indices Section
Central Statistical Bureau of Latvia
Oskars Alksnis 371-67366865