Consumer price level in January 2009

09.02.2009

Compared to December 2008 the average consumer price level in January 2009 rose by 2.2%. The average prices of goods rose by 2.1%, but of services - by 2.3%.

In January prices of goods and services grew almost in all main commodity groups (except clothing, footwear and fuel), and it was mainly influenced by the tax changes. Price growth of housing services, tobacco products and vegetables had the greatest impact on price increase.

Price growth in food commodity group (+3.5%) was mainly influenced by the rise of value added tax (VAT), moreover, due to the seasonality the prices of vegetables and fruit grew, by 12.8% and 4.4%, respectively.

Prices of alcoholic beverages on average increased by 3.3%, and that was mainly influenced by the ending sales campaigns, but the growth of tobacco product prices (+7.0%) was influenced by the growth of excise duty.

The VAT change most importantly influenced the prices of water supply (+16.3%), sewerage (+16.8%), refuse collection (+16.6%), electricity (+4.6%) as well as pharmaceutical products, books, newspapers and periodicals.

Price increase was recorded also for heat energy, natural gas, pet food, individual care goods, non-durable household goods, passenger transport services, housing maintenance services, catering services and outpatient services.

Due to continuation of seasonal sales campaigns, prices of wearing apparel (-5.7%) and footwear (-7.0%) decreased. Prices of fuel on average decreased by 4.9%.

Compared to January of previous year, consumer prices have increased by 9.8%, of which prices for goods increased by 8.9%, but for services – by 12.2%.

The annual average rate of change in January 2009 was 14.9%.

In 2009 the Consumer Price Index (CPI) basket is revised and updated. The weights used in the calculations of the index reflect household expenditure pattern from 4th quarter 2007 until 3rd quarter of 2008 (including).

In 2009 for the calculation of CPI each month in 2.1 thsd outlets all around the country approximately 19000 prices of 460 goods and services are collected.

Consumer price change by commodity groups, %:

Commodity group

Weight, %

January 2008 -
January 2009

December 2008 -January 2009

Total

100.0

9.8

2.2

Food

23.8

10.7

3.5

Alcoholic beverages and tobacco

7.2

14.9

4.9

Clothing and footwear

7.0

-1.7

-5.8

Housing, water, electricity, gas and fuels

13.7

35.9

4.4

Furnishing, household equipment and operation

5.5

4.8

2.6

Health care

5.1

11.9

4.3

Transport

13.2

-5.2

-0.5

Communication

4.5

-5.5

1.6

Recreation and culture

8.3

6.3

1.8

Education

1.4

23.1

1.6

Hotels and public catering

5.2

14.8

2.0

Miscellaneous goods and services

5.2

10.3

3.1

For further information:

Consumer Price Indices Section
Central Statistical Bureau of Latvia

Oskars Alksnis 371-67366865