Consumer price level in 2007

10.01.2008

The consumer prices in 2007 1) have increased by 14.1%, of which prices for goods increased by 13.2%, but for services – by 16.4%.

The price growth of food products and goods and services related to the housing had the greatest impact on the consumer price increase in 2007. During a year the average price level of food products increased by 19.9%. The prices of bread, cereal products, confectionery, milk and dairy products, cheese, eggs, meat and meat products, oils and fats, fruit and soft drinks had steep increase.

In previous year the prices of all goods and services related to the housing continued to grow, especially for heat energy, water supply, sewerage services, refuse collection, rent, solid fuel, liquified gas and electricity.

With the increase of the taxes, last year the prices of tobacco products rose by 37.8%.

During the year fuel became more expensive (+21.6%).

Administered prices in 2007 grew by 16.5%.

The annual average consumer price increase in 2007 was 10.1%.

Compared to November, in December the consumer prices increased by 0.7% (prices of goods grew by 0.6% and prices of services – by 0.9%).

The price growth of food products and heat energy, as well as the price decrease of clothing and footwear had the greatest impact on the consumer price changes during the month.

The prices of bread and cereal products, milk and dairy products, cheese and eggs as well as catering services and heat energy continued to grow.

Due to the seasonal discounts the prices of footwear and clothing decreased by 7.0% and 1.9% respectively.

Various special offers have impacted on the price decrease for telecommunication services, household appliances, mobile phones, photo equipment and computers.

Consumer price change by commodity groups, %:

Commodity group

December 2006 -
December 2007

November 2007 -
December 2007

Total

14.1

0.7

Food

19.9

1.7

Alcoholic beverages and tobacco

20.9

0.7

Clothing and footwear

0.8

-3.3

Housing, water, electricity, gas and fuels

21.0

1.0

Furnishing, household equipment and operation

4.2

0.0

Health care

9.5

0.5

Transport

14.8

0.6

Communication

-6.3

-1.4

Recreation and culture

7.0

1.5

Education

18.7

0.0

Hotels and public catering

21.3

1.0

Miscellaneous goods and services

13.1

0.5

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1) Price changes between December 2007 and December 2006

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