On producer price changes in industry in January 2009

26.02.2009

Compared to December 2008, producer prices in Latvian industry in January 2009 decreased by 0.6%, according to the data of Central Statistical Bureau of Latvia. Over the year (compared to January 2008) producer prices have increased by 7.2%.

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

Price changes in January 2009 compared to

December 2008

January 2008

Industrial production, total of which:

total of which:

-0.6

7.2

sold on the domestic market

-0.7

12.1

exported

-0.5

-0.8

Compared to December 2008, the overall level of producer prices in January 2009 was mostly reduced by the price decrease in the manufacture of wood and wood products, except furniture (by 0.7 percentage points), in the manufacture of basic metals, electricity, gas, steam and air conditioning supply (by 0.3 percentage points in each activity). However, the greatest increasing impact was furthered by the price rise in the manufacture of beverages and of other non-metallic mineral products (by 0.2 percentage points in each activity).

Over the year the increase of the tariffs of electricity, gas, steam and air conditioning supply left the biggest impact on the overall level of producer prices (increasing it by 7.6 percentage points). In its turn, the greatest lowering impact (by 2.2 percentage points) was furthered by the price decrease in the manufacture of wood and wood products (except furniture).

Starting with January 2009 Statistical Classification of Economic Activities in the European Community, Rev. 2 (NACE Rev. 2) was introduced in calculations of producer price index. In January 2009, similarly to the previous years, the weights used in the calculations of producer price index were updated. The breakdown of products sold on 2007 that align with the structure of NACE Rev. 2 is used as the weights. The prices of December of the previous year serve as the base prices. In order to ensure consistency between the weights and the prices base period, the weights have been recalculated into prices of December 2008.

Prepared by Price Statistics Department
Producer Price Indices Section
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