Industrial producer prices in 2005 increased by 7.0%

20.01.2006

Producer prices over the year (December 2005 over December 2004) in Latvian industry have increased on average by 7.0%. Compared to November, producer prices have increased by 0.4%. A year ago, in December 2004 prices rose by 11.4% compared to December 2003 but compared to November 2004 – by 0.1%.

Producer price indices and price changes by months in 2005 were as follows:

(in per cent)

  

Price index
December 2004 =100

Price changes compared to

previous
month

corresponding month
of previous year

2005

January

101.3

1.3

10.9

February

101.9

0.6

10.4

March

102.4

0.5

10.1

April

102.2

-0.2

8.6

May

102.5

0.3

8.2

June

103.4

0.9

7.0

July

102.7

-0.7

5.8

August

103.9

1.2

6.2

September

104.3

0.4

6.3

October

105.5

1.1

6.8

November

106.5

1.0

6.7

December

107.0

0.4

7.0

A comparison of price dynamics of the products sold on the domestic market and products exported shows that the prices of exported products have increased at a more rapid pace.

(in per cent)

 

2005
over
2004

4th quarter of 2005
compared to

December 2005
compared to

3rd quarter
of 2005

4th quarter
of 2004

November
2005

December
2004

Industrial production, total

7.8

2.6

6.8

0.4

7.0

of which:

sold on the domestic market

7.3

2.2

6.5

0.2

6.7

exported

8.5

3.2

7.3

0.7

7.5

Producer price indices and price changes in the most relevant industrial sectors in December 2005

(in per cent)

   

Price index
(December
2004 = 100)

Price changes in December
2005 compared to

November
2005

December
2004

Industry - Total

107.0

0.4

7.0

Mining and quarrying

106.5

1.7

6.5

Manufacturing

107.4

0.5

7.4

Manufacture of food products and beverages

110.7

0.2

10.7

Manufacture of textiles

100.6

-0.7

0.6

Manufacture of wearing apparel; dressing and dyeing of fur

103.1

-0.2

3.1

Manufacture of wood and of products of wood
(except furniture)

106.6

1.5

6.6

Manufacture of pulp, paper and paper products

103.0

-9.1

3.0

Publishing, printing and reproduction of recorded media

102.4

2.0

2.4

Manufacture of chemicals, chemical products and man-
made fibres

111.1

2.1

11.1

Manufacture of rubber and plastic products

105.4

-0.1

5.4

Manufacture of non-metallic mineral products

115.0

0.5

15.0

Manufacture of fabricated metal products (except machinery and equipment)

109.5

-1.8

9.5

Manufacture of machinery and equipment

108.5

-0.4

8.5

Manufacture of electrical machinery and apparatus

102.9

0.9

2.9

Manufacture of other transport equipment1

131.6

-0.2

31.6

Manufacture of furniture; manufacturing n.e.c.

106.8

2.0

6.8

Electricity, gas and water supply

104.5

0.0

4.5

Electricity, gas, steam and hot water supply

104.4

-0.1

4.4

Collection, purification and distribution of water

106.1

0.9

6.1

______________________

1

Shipbuilding and repair as well as the manufacture of railway rolling stock.

Compared to November, the overall level of producer prices in December 2005 was raised mostly due to the increase of 0.3 percentage points in the prices of wood and of products of wood (except furniture). Price increases in publishing, printing and reproduction of recorded media as well as in the manufacture of furniture and manufacturing n.e.c raised the overall price level by 0.1 percentage point. By contrast, price decreases in the manufacture of pulp, paper and paper products as well as in the manufacture of fabricated metal products (except machinery and equipment) had the sharpest lowering effect on the overall level of prices (by 0.1 percentage point).

The price increase of 2.4 percentage points in the manufacture of food products and beverages had the most substantial impact on the overall level of producer prices during the year. The overall level was raised by the following price increases: 1.3 percentage points in the manufacture of wood and of products of wood, 0.8 percentage points in the manufacture of other transport equipment, 0.5 percentage points in electricity, gas, steam and hot water supply, 0.4 percentage points in the manufacture of fabricated metal products except machinery and equipment and 0.3 percentage points in the manufacture of chemicals, chemical products and man-made fibres.

Compared to the previous quarter, producer prices in the 4th quarter last year rose by 2.6%. The most rapid price increases were 4.7% in the manufacture of other transport equipment, 3.5% in the manufacture of rubber and plastic products and 2.9% in the manufacture of food products and beverages.

Compared to the corresponding quarter of 2004, producer prices in the 4th quarter of 2005 rose on average by 6.8%. The steepest increase in the prices (by 36.5%) was observed in the manufacture of other transport equipment. There were the following price increases: 15.4% in the manufacture of non-metallic mineral products, 10.8% in the manufacture of fabricated metal products, 10.6% in the manufacture of food products and beverages and 10.3% in the manufacture of machinery, equipment and machine tools.

Compared to 2004, producer prices in 2005 increased on average by 7.8%. The steepest price increases were 27.2% in the manufacture of other transport equipment, 17.1% in the manufacture of machinery, equipment and machine tools, 16.1% in the manufacture of fabricated metal products except machinery and equipment, 13.3% in the manufacture of non-metallic mineral products and 10.1% in the manufacture of food products and beverages. Over the same period a slight decrease (by 0.5%) in the prices was observed in the manufacture of textiles.

Prepared by the Producer Price Indices Section
Price Statistics Department
Aleksandrs Grzibovskis Tel. 7366813