In January industrial producer prices increased by 1.3 %

21.02.2006

Compared to December 2005, producer prices in Latvian industry in January 2006 increased on average by 1.3%, according to the Central Statistical Bureau. Over the year (January 2006 over January 2005) producer prices have increased by 7.1%. A year ago, in January 2005 prices also rose by 1.3% compared to December 2004 but compared to January the increase was 10.9%.

An analysis of producer price changes in industry by the direction of product sales shows that prices for the products sold on the domestic market have increased at a more rapid pace:

(in per cent)

 

Price change in January 2006 compared to

December 2005

January 2005

Industrial production, total

1.3

7.1

of which:

sold on the domestic market

1.8

7.5

exported

0.7

6.4

Producer price indices and price changes in the most relevant industrial sectors in January 2006:

(in per cent)

    

Price index
(December 2005 = 100)

Price changes in January 2006 compared to

December 2005

January 2005

Industry - Total

101.3

1.3

7.1

Mining and quarrying

103.9

3.9

10.9

Manufacturing

101.0

1.0

6.9

Manufacture of food products and beverages

100.1

0.1

9.3

Manufacture of textiles

101.1

1.1

4.4

Manufacture of wearing apparel; dressing and dyeing of fur

99.6

-0.4

2.7

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

100.7

0.7

6.1

Manufacture of pulp, paper and paper products

98.2

-1.8

-7.8

Publishing, printing and reproduction of recorded media

101.3

1.3

3.8

Manufacture of chemicals, chemical products and man-made fibres

101.3

1.3

6.3

Manufacture of rubber and plastic products

103.7

3.7

8.4

Manufacture of non-metallic mineral products

104.2

4.2

14.0

Manufacture of fabricated metal products (except machinery and equipment)

103.5

3.5

8.3

Manufacture of machinery and equipment

100.2

0.2

6.1

Manufacture of electrical machinery and apparatus

104.3

4.3

6.5

Manufacture of other transport equipment1

103.5

3.5

32.0

Manufacture of furniture; manufacturing n.e.c.

96.8

-3.2

1.0

Electricity, gas and water supply

103.4

3.4

8.0

Electricity, gas, steam and hot water supply

103.6

3.6

8.1

Collection, purification and distribution of water

100.0

0.0

6.1

______________________

1

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

Compared to December last year, the overall level of producer prices in January 2006 was mostly raised by the increase in the tariffs of electricity, gas, steam and hot water supply (by 0.4 percentage points). The overall price level was raised by the price increase of 0.2 percentage points in the manufacture of non-metallic mineral products (mainly in the manufacture of ready-made concrete mix) and the rises of 0.1 percentage point in each of the following activities: manufacture of wood and of articles of wood (except furniture), manufacture of rubber and plastics products, manufacture of fabricated metal products (except machinery and equipment) and manufacture of electrical machinery and equipment as well as manufacture of other transport equipment.

The price increase of 2.1 percentage points during the year in the manufacture of food products and beverages accounted for the most significant rise in the overall level of producer prices. The overall price level was raised by the price increases of 1.2 percentage points in the manufacture of wood and of articles of wood, except furniture, 1.0 percentage point in electricity, gas, steam and hot water supply and 0.8 percentage points in the manufacture of other transport vehicles.

Similarly as in previous years, the weights used for the calculation of producer price indices were updated in January 2006: the value of products sold in 2004 and broken down according to the structure of the Statistical Classification of Economic Activities (NACE Rev.1.1) is used as weights. The prices of December of the previous year serve as the base prices. To ensure consistency between the weights and the base period of prices, the weights have been recalculated into the prices of December 2005.

Prepared by the Producer Price Indices Section
Price Statistics Department
Aleksandrs Grzibovskis

Tel. 7366813