On consumer price changes in October 2010

08.11.2010

Compared to September 2010, the average consumer price level in October 2010 increased by 0.4%. Prices of goods rose by 0.6%, but of services – fell by 0.3%.

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

The major contributor to the increase in food was bread and cereals(by 5.8%). The most significant effect came from buckwheat, semolina and different types of bread.The price increases were recorded also for fresh vegetables, milk and dairy products, cheese, tea, coffee, sugar, meat and meat products, oils and fats. In its turn, price decrease was observed on fruit, non-alcoholic beverages, fish and fish products.

The rise in clothing by 3.1%, clothing accessories by 3.8% and footwear by 5.0% was due to cessation of sales and price rises for new season stock.

In housing group heat energy had the largest downward impact. It became cheaper for 2.7%. In its turn liquefied gas, rent, as well as solid fuel became more expensive.

In October price rise was observed for fuel, cleaning and maintenance products, flowers, motor cars, furniture and furnishings.

Prices decreased for package holidays, telecommunication and cultural services. The fall in products for personal care, alcoholic beverages, pharmaceutical products and TV, video, audio equipment was due to special offers.

Compared to October of the previous year, consumer prices increased by 1.0%. The average price level for goods increased by 2.6%, but for services – decreased by 3.2%.

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

Consumer price change by commodity groups, %:

Commodity group

October 2009 -
October 2010

December 2009 -
October 2010

September 2010 -
October 2010

Total

1.0

2.2

0.4

Food and non-alcoholic beverages

4.7

5.4

1.4

Alcoholic beverages and tobacco

0.0

1.5

-0.2

Clothing and footwear

-3.7

0.7

3.6

Housing, water, electricity, gas and other fuels

4.2

6.2

-0.6

Household goods and services

-4.2

-2.5

0.9

Health care

-1.7

-1.3

-0.1

Transport

4.9

4.7

0.3

Communications

-3.6

-3.3

-0.3

Recreation and culture

-3.8

-3.4

-1.0

Education

0.9

0.9

0.0

Hotels, cafes and restaurants

-3.4

-2.0

-0.1

Miscellaneous goods and services

-4.7

-2.2

-0.8

 

Sub-indices with most important impacts:

September 2010 -
October 2010

Impact (percentage points)

Bread and cereals

+0.24

Vegetables

+0.11

Clothing

+0.11

Footwear

+0.09

Milk, cheese and eggs

+0.08

Package holidays

-0.07

Fruit

-0.11

Heat energy

-0.14

 

October 2009 -
October 2010

Impact (percentage points)

Heat energy

+0.66

Fuels

+0.65

Milk, cheese and eggs

+0.50

Vegetables

+0.41

Fruit

+0.23

Telecommunication services

-0.16

Meat and meat products

-0.22

Clothing

-0.24

For further information:

Consumer Price Indices Section
Central Statistical Bureau of Latvia

Oskars Alksnis 371-67366856