During the year, consumer prices rose by 0.4%

11.02.2014

Compared to January 2013, the average consumer price level in January 20141rose by 0.4%. Prices of goods decreased by 0.3%, but prices of services grew by 2.3%. Compared to previous 12 months, average consumer price level in the last 12 months 2) did not change.

Changes in consumer prices in 2012 and 2013

(% over corresponding month of the previous year)

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

(percentage points)

Data source: Central Statistical Bureau of Latvia

The greatest pressure on the average level of consumer prices in January 2014, as compared to January 2013, was put by the increase in prices of health and individual care goods, of hotel and restaurant services, of alcoholic beverages and tobacco, as well as by the price drop of transport goods and services.

During the 12 months, prices of food products have risen by 0.1%. The most significant increase was recorded in prices of vegetables (+11.0%), milk and dairy products (+5.3%), cheese (+3.6%), meat and meat products (+0.5%), while significant reduction was recorded in prices of tea and coffee (-12.1%), eggs (-18.2%), bread and cereal products (-2.4%), as well as fruit (-4.7%).

Prices of alcoholic beverages grew by 1.5%, but of tobacco – by 2.1%.

Transport group indicated a drop in prices of fuel (-4.0%), as well as of motor vehicle parts and accessories (-3.3%).

In recreation and culture group on average prices grew by 1.5%, which was influencedby increase in prices of cultural services by 3.0%, as well as of recreation and sport services – by 3.8%. While prices of TV, video, audio equipment diminished by 5.9%.

During the 12 months, prices of hotel and restaurant services rose by 3.7% as prices in cafés and restaurants grew by 5.4%, in canteens – by 1.5%, but prices on accommodation services – by 3.4%.

Prices of health and individual care goods increased by 3.2%. Prices of hairdresser services rose by 6.6%, of jewellery – by 9.4% and prices of financial services grew by 6.6%. Price changes in group were also affected by the end of discounts and price rounding due to introduction of euro currency. 

In the rest of consumer groups major price increases were recorded for maintenance charges in multi-occupied buildings, solid fuel, clothing and non-durable household goods. But telecommunication services have become cheaper.

Compared to December 2013, consumer prices in January 2014 rose by 0.6%: average level of prices of goods increased by 0.5%, but prices of services – by 1.1%.

January of this year was the first month when consumers paid for purchases in euros, and in price collection current prices in lats were replaced by euros. Compared to trends in price changes characteristic to January of previous years, this year rise in prices of services exceeded increase of prices of goods more than twice.

Consumer price changes by commodity group, %

 

Sub-indices having the greatest impacts, percentage points

Commodity group

Price changes in January 2014, compared to

January 2013

December 2013

Total

0.4

0.6

Food

0.1

1.7

Alcohol, tobacco

1.7

1.5

Clothing, footwear

0.5

-6.5

Housing

0.1

0.9

Furnishings

0.9

1.5

Health

1.3

0.5

Transport

-1.8

0.2

Communication

-2.5

-0.5

Recreation, culture

1.5

1.3

Education

-0.1

-0.1

Hotels, restaurants

3.7

1.5

Miscellaneous

3.2

1.6

 

 

During a month

Vegetables

+0.32

Beer

+0.11

Maintenance charges in multi-occupied buildings

+0.09

Meat and meat products

+0.06

 Individual care goods

+0.06

Spirits

-0.04

Footwear

-0.15

Clothing

-0.22

 

During 12 months

Vegetables

+0.23

Maintenance charges in multi-occupied buildings

+0.16

Milk and dairy products

+0.15

Cafés and restaurants

+0.12

Eggs

-0.11

Tea, coffee

-0.14

Fuels for transport

-0.25

Heat energy

-0.33

 
The greatest upward pressures on the consumer prices during the month were put by food (1.7%) and housing maintenance goods and services (0.9%), while downward – by clothing and footwear (6.5%).

In January the most notable increase within the food group was observed in prices of vegetables, sugar, fruit, meat, cheese and fish. While significant reduction was recorded in prices of bread, eggs, oils and fats, tea and coffee.

The greatest influence in housing maintenance goods and services group was exerted by the growth in prices of maintenance charges in multi-occupied buildings and goods and services for repair of the dwelling. Natural gas tariff fell down by 1.4%.

Affected by winter season discounts and sales, prices in January continued to decrease on clothing and footwear.  The prices for footwear dropped by 8.7% and for clothing – by 6.2%.

In transport group prices have gone up on maintenance and repair services of motor vehicles (+1.6%). Significant price reduction was on passenger transport services (-0.9%), which was mainly determined by price decrease for Riga public transport. In January average prices of petrol dropped by 0.3%, of diesel – by 0.3%, but of liquid petroleum gas rose by 4.4%.

Among other consumption groups, increase was recorded in prices of books, alcoholic beverages, non-durable household goods and package holidays. While prices of bicycles, household textiles, jewellery and watches diminished.

In January the Consumer Price Index (CPI) basket is revised and updated. The weights used in the calculations of the index in 2014 reflect household expenditure structure in 2013. In 2014 for the calculation of CPI each month in 2 thsd outlets all around the country approximately 20 thsd prices of 518 goods and services are collected.

Information on Consumer Price Index in February 2014 will be published on March 10.

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

 

More information:
Consumer Price Indices Section
Nataļja Dubkova
Tel. +371 67366644

 

1) The annual measure of inflation that is used to compare average monthly price level with the average price level in the corresponding month of the previous year.
2) The average annual measure of inflation that is used to compare the average price level of the last 12 months with the average price level in 12 months of the previous.