During the year, the average level of consumer prices grew by 0.3 %

12.01.2016

According to the latest data of the Central Statistical Bureau of Latvia (CSB), compared to December 2014, the average consumer price level in December 2015rose by 0.3%. Prices of goods decreased by 0.3 %, while prices of services grew by 2.1 %.

 

Changes in consumer prices in 2014 and 2015

(% over the corresponding month of the previous year)

 

 

Commodity group impact on Consumer Price Index during the last 12 months

(percentage points)

 

 

The greatest upward pressure on the average level of consumer prices in December 2015, as compared to December 2014, was put by alcoholic beverages and tobacco products, goods and services related to housing, hotel and restaurant services, whereas the strongest downward pressure was applied by goods and services related to transport, food and non-alcoholic beverages.

In comparison with corresponding month of the previous year, the average level of food prices in December 2015 declined by 0.8 %. Milk and dairy products had the most significant impact on the price reduction. Drop was recorded also in prices of vegetables, cheese, oils and fats, as well as ground coffee, whereas increase was observed in prices of fruit, meat and meat products, buckwheat, eggs, potatoes and sugar.

Due to notable rise in prices of beer and spirits, the average level of alcoholic beverage prices increased by 5.7 %. Prices of tobacco products went up by 1.8 %.

During the year, prices of goods and services related to housing increased by 1.7 %. Rise was recorded in prices of refuse collection, maintenance charges in multi-occupied buildings, while reduction was observed in prices of heat energy and natural gas.

Adversely affected by the reduction in prices of fuels for transport of 11.0 %, the average price level within transport group dropped by 2.3 %. Prices of passenger transport by air went down, whereas prices of services of passenger transport by railway and road, as well as prices of maintenance and repair services of personal transport equipment went up.

As compared to December of previous year, prices of hotel and restaurant services rose by 2.5 %. Prices in cafés and restaurants increased by 2.7 %, and in canteens – by 2.3 %. During the year the average level of prices of hotel services diminished by 0.3 %.

Among other consumption groups, the most notable increase was recorded in prices of telecommunication services and pharmaceutical products, while the most significant drop was observed in prices of individual care goods, hospital services, package holidays, as well as clothing.

In 2015, administered prices reduced by 2.6 %, whereas non-administered prices increased by 0.7 %.

As compared to 12 previous months, the average annual consumer price level2 rose by 0.2 %. In 2014, average level of consumer prices of the last 12 months increased by 0.6 %.

The trend of average consumer price level – with distinct downturn since the beginning of 2012 – was similar in all three Baltic States. In 2014, in Latvia, unlike in other Baltic States, an upward trend was observed, whereas in 2015, similarly as in Lithuania, the trend was moderately downward.

Consumer Price Index in Latvia, Lithuania and Estonia in 2010–2015
(on average during 12 months over the previous 12 months)

  

Compared to the month before, average consumer price level in December 2015 decreased by 0.3 %. Prices of goods reduced by 0.6 %, but prices of services increased by 0.3 %.

The greatest downward pressure on the price changes in December was put by clothing and footwear, food and non-alcoholic beverages, individual care goods and services, as well as furnishings, whereas the strongest upward pressure was applied by alcoholic beverages and tobacco products, recreation and culture.

During the month, prices of food went down by 0.8 %. Reduction in prices of vegetables of 11.9 % had the most significant impact on the price level changes within food group. Reduction was observed in prices of fruit, bread and cereals, fats and oils, ground coffee, sugar. Whereas increase was recorded in prices of meat and meat products, fish, eggs, and potatoes.

Due to the end of discounts on wine and spirits, the average level of alcoholic beverage prices went up by 1.5 %. Prices of tobacco products increased by 0.2 %.

Affected by discounts and sales the prices of footwear dropped by 5.7 % and prices of clothing – by 2.1 %.

Prices of furnishings in December declined by 0.5 %. Due to promotions, a reduction in prices of household appliances was observed. Prices of household textiles increased.

Mainly because of the rise in prices of package holidays, pet food and flowers, prices within the recreation and culture group went up on average by 0.2 %. Sales campaigns served as a reason behind the drop in toy prices.

The most notable increases among other consumption groups were recorded in prices of fuels for transport, as well as individual care goods and services.

Consumer price changes by commodity group, %

 

Sub-indices having the greatest impacts, percentage points

Commodity group

Price changes in December 2015, compared to

December 2014

November 2015

Total

0.3

-0.3

Food

-0.8

-0.8

Alcohol, tobacco

4.3

1.0

Clothing, footwear

-0.5

-3.1

Housing

1.7

-0.1

Furnishings

0.1

-0.5

Health

0.8

0.0

Transport

-2.3

0.0

Communication

1.8

0.0

Recreation, culture

0.2

0.2

Education

1.6

0.0

Hotels and restaurants

2.5

0.0

Miscellaneous

-0.6

-0.5

 

 

During a month

Meat and meat products

0.09

Vine

0.06

Services of passenger transport by water

0.04

Fruit

-0.05

Fuels for transport

-0.06

Clothing

-0.08

Footwear

-0.10

Vegetables

-0.17

 

 

During 12 months

Electricity

0.88

Services of passenger transport by road

0.20

Beer

0.20

Maintenance and repair servicesof personal transport equipment

0.09

Gas

-0.12

Milk and dairy products

-0.24

Heat energy

-0.53

Fuels for transport

-0.65

 
 

Information on Consumer Price Index in January 2016 will be published on 10 February 2016.

More detailed information on consumer price changes is available in the CSB database.

1The annual inflation characterises consumer prices changes comparing the average price level in the reference month with the average price level in the corresponding month of the previous year.

2The average annual inflation characterises the average consumer price level of the last 12 months in comparison with the average consumer price level in 12 months of the previous year. This indicator is mainly used for macroeconomic analysis, investigating inflation processes over a longer time period, since it is practically not affected by short-term or temporary price fluctuations.

 

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Beate Danusēviča, Kristīne Romanovska
Inforation and Communication Section
media [at] csb [dot] gov [dot] lv
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More information on data:
Consumer Prices Indices Section
Nataļja Dubkova
natalja [dot] dubkova [at] csb [dot] gov [dot] lv
Tel. + 371 67366644