Consumer price level in January 2007

08.02.2007

Compared to December 2006, the average level of consumer prices in January 2007 rose by 1.3%. Prices for goods increased by 1.0% and prices for services went up by 2.4%.

The rise in the prices of vegetables, catering services, electricity and automotive fuel as well as the fall in the prices of wearing apparel, footwear and natural gas had the greatest impact on consumer price changes in January.

Due to the seasonal impact vegetables have become more expensive. Prices continued to rise for the following products: bread, grain mill products, confectionery, milk products, sugar and meat and meat products. Coffee became more expensive, as did mineral water.

In January there were rises in the prices of services and commodities related to dwelling maintenance: water supply and sewerage, electricity, dwelling repair services and heating. Due to the reduced rate of value added tax, supply of natural gas became cheaper.

The services of catering, hairdressers and personal grooming establishments, health and passenger transport by railway became more expensive.

Due to the seasonal sales, there were decreases in the prices of wearing apparel and footwear.

In comparison with January last year, consumer prices rose by 7.1% (6.4% for goods and 9.3% for services).

The basket of consumer price index (CPI) was revised and updated in 2007, with new goods and services included and those goods excluded that had lost significance in the expenditures of the households. For the calculations in 2007, the CPI basket contains 443 goods and services; each month approximately 20 thsd prices are collected at the 2.4 thsd outlets in the whole country. The weights used for the index calculation reflect the household consumption expenditure in the period from the 4th quarter 2005 to the 3rd quarter of 2006 inclusive. The prices of December 2006 serve as the base prices. Starting from January 2007, the index base period is the year 2005 (2005=100). In order to provide the continuity of data series for a longer period of time, price indices in the CSB database are published with the base 2000=100 as well.

Consumer price change by commodity groups, %:

Commodity group

Weight, %

January 2006 -
January 2007

December 2006
-January 2007

Total

100.0

7.1

1.3

Food

25.4

9.9

2.2

Alcoholic beverages and tobacco

7.0

6.9

1.2

Clothing and footwear

7.2

1.3

-5.3

Housing, water, electricity, gas and fuels

13.2

13.4

2.2

Furnishing, household equipment and operation

5.6

4.3

0.7

Health care

4.3

6.2

1.9

Transport

12.2

3.2

2.5

Communication

5.2

-5.5

0.3

Recreation and culture

8.4

2.5

1.2

Education

1.4

11.0

0.3

Hotels and public catering

5.2

14.6

2.8

Miscellaneous goods and services

4.9

8.9

2.0


For further information:

Consumer Price Indices Section
Central Statistical Bureau of Latvia
Oskars Alksnis 371-7366865