On producer price changes in industry in January 2008

21.02.2008

Compared to December 2007, producer prices in Latvian industry in January 2008 increased on average by 1.3%, according to Central Statistical Bureau of Latvia. Over the year (January 2008 over January 2007) producer prices have increased by 10.9%.

Producer price changes in industry by the direction of product sales
(in per cent)

Price changes in January 2008 compared to

December 2007

January 2007

Industrial production,
total of which:

1.3

10.9

     sold on the domestic market

1.1

15.1

     exported

1.7

5.2

Compared to December of previous year, the overall level of producer prices in January 2008 was mostlyeffected by the following price increases: 0.6 percentage points in the manufacture of food products and beverages (mainly in the manufacture of dairy products and cheese), 0.3 percentage points in the manufacture of other non-metallic mineral products and 0.2 percentage points in each of such activities as the publishing, printing and reproduction of recorded media, the manufacture of chemicals, chemical products and man-made fibres, the manufacture of fabricated metal products, except machinery and equipment, the manufacture of furniture; manufacturing n.e.c. However, the decrease in the tariffs of electricity, gas, steam and hot water supply (mostly in the distribution of gaseous fuels through mains) significantly - by 0.7 percentage points - lowered the overall level of producer prices.

Over the year the price increase in the manufacture of food products and beverages left the biggest impact on the overall level of producer prices, increasing it by 4.5 percentage points. The overall price level was mostly raised due to the following price increases: 1.2 percentage points in electricity, gas, steam and hot water supply, 0.9 percentage points in the manufacture of non-metallic mineral products, 0.7 percentage points in the manufacture of furniture; manufacturing n.e.c. and 0.6 percentage points in the manufacture of wood and products of wood, except furniture.

Similarly as in previous years, the weights used in the calculations of the producer price index were updated in January 2008. The breakdown of the products sold in 2006 that align with the structure of the Statistical Classification of Economic Activities (NACE Rev.1.1) is used as the weights. The prices of December of the previous year serve as the base prices. To ensure consistency between the weights and the price base period, the weights have been recalculated into the prices of December 2007.

Prepared by Price Statistics Department
Producer Price Indices Section
Tel. 67366813
Aleksandrs Gržibovskis