In March producer prices in industry increased by 1.5%

25.04.2006

Compared to February, producer prices in Latvian industry in March 2006 increased by 1.5%, according to the Central Statistical Bureau. It is noteworthy that such a steep rise has not been observed since June 2004. Over the year (March 2006 over March 2005) producer prices have increased by 8.3%. In March 2005 prices rose by 0.5% compared to February but compared to March 2004 the increase was 10.1%.

Producer price indices and price changes in the three months of 2006 were as follows:

(in per cent)

  

Price index
(December 2005=100)

Price changes compared to

previous month

corresponding month of previous year

  2006         January

101.3

1.3

7.1

                    February

102.1

0.8

7.2

                    March

103.6

1.5

8.3

Producer price changes depending on the direction of product sales are shown in the table:

(in per cent)

March 2006 compared to

1st quarter 2006 compared to

February 2006

March 2005

4th quarter 2005

1st quarter 2005

Industrial production, total

1.5

8.3

3.0

7.5

of which:

sold on the domestic market

1.2

8.0

2.9

7.6

exported

1.9

8.6

3.1

7.3

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

(in per cent)

    

Price index
(Dec 2005 = 100)

Price changes in March 2006 compared to

February 2006

March 2005

Industry - Total

103.6

1.5

8.3

Mining and quarrying

107.2

1.1

10.3

Manufacturing

103.0

1.3

7.7

Manufacture of food products and beverages

102.1

1.9

9.3

Manufacture of textiles

100.5

0.4

3.3

Manufacture of wearing apparel; dressing and dyeing of fur

101.9

2.0

5.4

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

99.4

-0.4

2.0

Manufacture of pulp, paper and paper products

106.6

4.7

8.0

Publishing, printing and reproduction of recorded media

97.7

-2.5

0.4

Manufacture of chemicals, chemical products and man-made fibres

101.7

1.0

3.2

Manufacture of rubber and plastic products

104.1

-0.3

8.6

Manufacture of non-metallic mineral products

104.9

0.7

12.3

Manufacture of fabricated metal products
(except machinery and equipment)

106.3

2.3

11.8

Manufacture of machinery and equipment

103.2

0.9

8.0

Manufacture of electrical machinery and apparatus

104.1

0.8

5.8

Manufacture of other transport equipment1

108.5

3.9

26.6

Manufacture of furniture; manufacturing n.e.c.

98.9

0.8

3.3

Electricity, gas and water supply

107.2

2.9

12.0

Electricity, gas, steam and hot water supply

107.5

3.0

12.3

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 February, the overall level of producer prices in March 2006 was mostly raised by price increases of 0.4 percentage points in the manufacture of food products and beverages and by the increase of 0.3 percentage points in the tariffs of electricity, gas, steam and hot water supply (mainly in electricity generation).

The increases in the prices of food products and beverages and in the tariffs of electricity, gas, steam and hot water supply accounted for the most significant rise in the overall level of producer prices during the year (by 2.1 percentage points and 1.4 percentage points, respectively). The overall price level was raised by the price increases of 0.7 percentage points in the manufacture of other transport vehicles, 0.5 percentage points in the manufacture of fabricated metal products (except machinery and equipment) and 0.4 percentage points in the manufacture of wood and of articles of wood (except furniture) as well as in the manufacture of non-metallic mineral products.

Compared to the 4th quarter of 2005, producer prices in the 1st quarter of 2006 rose on average by 3.0%. The steepest price rises were 7.0% in mining and quarrying, 5.8% in electricity, gas, steam and hot water supply, 5.5% in the manufacture of other transport vehicles and 4.8% in the manufacture of non-metallic mineral products. Over the same period there were prices decreases of 2.5% in the manufacture of pulp, paper and paper products, 0.5% in the manufacture of furniture and manufacturing n.e.c. and 0.1% in the manufacture of textiles.

Compared to the corresponding period last year, producer prices in the 1st quarter this year rose on average by 7.5%. There were the following steep price rises: 31.1% in the manufacture of other transport vehicles, 12.5% in the manufacture of non-metallic mineral products, 10.6% in mining and quarrying, 10.2% in the manufacture of fabricated metal products (except machinery and equipment) and 9.7% in electricity, gas, steam and hot water supply.

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

Tel. 7366813