During the year consumer prices rose by 0.6%

08.08.2014

Compared to July 2013, the average consumer price level in July 2014rose by 0.6%. Prices of goods decreased by 0.2%, while prices of services grew by 3.0%. Compared to the previous 12 months the average consumer price level over the last 12 months2, increased by 0.2%.

Changes in consumer prices in 2013 and 2014

(% over the 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

As compared to July 2013 the greatest pressure on the average level of consumer prices in July 2014 was put by increase in the prices of services related to housing, hotel and restaurant services, alcoholic beverages and tobacco, clothing and footwear, as well as by drop in the prices of food.

The average food price level in July 2014 as compared to the corresponding month of the previous year decreased by 0.7%. A significant price drop was recorded for vegetables. Prices also decreased for fruit, tea and coffee, sugar and fresh meat. In turn, the most significant price growth was recorded for milk, cheese and eggs, confectionery and honey, as well as for bread and cereals.

Prices of tobacco grew by 8.0%, while prices of alcoholic beverages decreased by 2.6%.

Prices of footwear increased by 8.4%, in turn prices of clothing dropped by 1.9%.

During the year prices of services related to housing increased by 1.8% due to the price growth for the services of maintenance and repair of the dwelling, water supply, sewage collection, and maintenance charges in multi-occupied buildings.

As compared to July 2013, prices of hotel and restaurant services increased by 4.3%, mainly due to price growth in cafés and restaurants of 6.0% and in canteens – of 2.7%.

Among other consumption groups, the most significant increase was recorded in prices of cultural services and services of hairdressing salons and personal grooming establishments.

As compared to the previous month, consumer prices in July 2014 decreased by 0.4%. The average price level of goods declined by 0.8%, whereas the average price level of services rose by 0.7%.

The greatest pressure on consumer prices during the month were put by drop in the prices of clothing and footwear, food, alcoholic beverages, as well as by growth in the prices of services related to housing.

Prices of food decreased by 0.5%. Affected by seasonal factors, drop was recorded in prices of vegetables and fruit. Prices of smoked and dried meat, eggs, fish and fish products also witnessed a downturn. In turn, prices of potatoes, confectionery and honey, tea and coffee increased.

Prices of alcoholic beverages decreased by 1.6%, which was affected by sales campaigns for beer and spirits. In turn, prices of tobacco products grew due to increase of the excise duty rate.

With the continuous summer sales campaigns prices of clothing dropped by 6.8% and of footwear - by 6.7%.

Prices of water supply and sewage collection witnessed growth. A significant price growth was recorded for heat energy due to increase of the natural gas sale prices.

Among other consumption groups, the most significant drop was recorded in the prices of individual care goods, garden products and flowers. In turn, price growth was registered for fuels for transport and cultural services.

Consumer price changes by commodity group, %

 

Sub-indices having the greatest impacts, percentage points

Commodity group

Price changes in July 2014, compared to:

July

2013

December 2013

June 2014

Total

0.6

1.2

-0.4

Food

-0.7

1.6

-0.5

Alcohol, tobacco

1.1

3.3

-1.0

Clothing, footwear

1.7

-2.9

-6.1

Housing

1.8

1.4

0.9

Furnishings

0.6

1.6

-0.3

Health

1.3

1.1

0.5

Transport

0.2

0.9

0.2

Communication

-2.1

-0.5

0.3

Recreation, culture

0.9

1.5

0.2

Education

0.1

-0.1

0.0

Hotels, restaurants

4.3

4.1

0.7

Miscellaneous

0.7

0.5

-0.8

 

 

During a month

Water supply

+0.05

Fuels for transport

+0.05

Heat energy

+0.04

Individual care goods

-0.05

Beer

-0.09

Vegetables

-0.12

Footwear

-0.12

Clothing

-0.25

 

During 12 months

Milk, cheese, eggs

+0.24

Tobacco

+0.22

Footwear

+0.14

Cafés and restaurants

+0.13

Maintenance charges in multi-occupied buildings

+0.11

Beer

-0.14

Fruit

-0.15

Vegetables

-0.29

 
Information on Consumer Price Index in August 2014 will be published on September 8.

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

 

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

 

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