On consumer price changes in September 2009

08.10.2009

Compared to August 2009, the average consumer price level in September 2009 decreased by 0.2%. The average prices of goods increased by 0.1%, but prices of services decreased by 1.0%.

The price drop of catering services, telecommunication services and fruit, as well as price growth of education services, wearing appeal and footwear had the greatest impact on consumer price changes in September.

Price decrease of catering services (on average by 2.2%) had the biggest downward impact on headline rate of consumer price changes. Price decrease was recorded both for the services in cafés and restaurants (2.0%), and in works, office and school canteens (2.5%).

Price drop of telecommunication services (on average by 1.9%) had a strong downward impact on consumer price changes. That mainly was influenced by the reduction of tariffs of pre-paid mobile phone cards and Internet connection.

Seasonal price decrease of fruit (7.1%) and vegetables (4.2%) as well as special offers of other food products, in particular meat and meat products, bread and cereal products, milk and dairy products, also had significant downward effect.

Prices of furniture, heating energy, motor cars and flowers continued to decrease, as well as prices of several services: services for maintenance and repair of the dwelling, rent, insurance, maintenance and repair of personal transport equipment, car parking, recreational and sports services, medical services and package holidays.

The end of sales and the entry of new seasonal articles on the market caused the price increase of footwear and wearing apparel - of 8.4% and 6.4% respectively, having the major upward impact on headline rate of consumer price changes in September.

Tuition fee in universities grew on average by 13.5%. That was mainly influenced by the effective study agreements, signed in the previous periods.

Price increase was recorded for passenger transport and financial services as well as appliances for personal care, non-durable household goods, alcoholic beverages, tee and coffee.


Compared to September of previous year, consumer prices have increased by 0.5%
(down from 1.8% in August). The average price level for goods did not change, but prices of services increased by 1.8%.

The annual average rate of change in September 2009 was 6.7%.

Within 9 months of 2009 the consumer prices grew by 0.2% (September of this year in comparison with December 2008).



Consumer price change by commodity groups, %:

Commodity group

September 2008 -
September 2009

December 2008 -
September 2009

August 2009 -
September 2009

Total

0.5

0.2

-0.2

Food

-4.7

-5.9

-1.3

Alcoholic beverages and tobacco

21.2

21.8

0.0

Clothing and footwear

-8.3

-5.5

6.8

Housing, water, electricity, gas and fuels

2.0

-6.9

-0.8

Furnishing, household equipment and operation

-1.7

-2.5

-0.5

Health care

17.5

16.9

-0.2

Transport

-4.9

4.3

-0.7

Communication

-1.9

-2.2

-1.7

Recreation and culture

2.0

0.8

-1.1

Education

10.6

10.4

8.1

Hotels and public catering

-4.2

-4.6

-2.1

Miscellaneous goods and services

3.5

3.1

1.2



Sub-indices with most important impacts:

August 2009 -
September 2009

Impact (percentage points)

Clothing

+0.25

Footwear

+0.15

Education

+0.12

Vegetables

-0.06

Meat and meat products

-0.07

Telecommunication services

-0.08

Fruit

-0.10

Catering services

-0.11


September 2008 -
September 2009

Impact (percentage points)

Tobacco products

+0.89

Alcoholic beverages

+0.63

Water supply and miscellaneous services relating to the dwelling

+0.41

Motor cars

-0.32

Fuels

-0.33

Vegetables

-0.34

Fruit

-0.35

Milk, cheese and eggs

-0.46



For further information:


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