On producer price changes in industry in September 2007

19.10.2007

Compared to August, producer prices in Latvian industry in September 2007 remained constant, according to Central Statistical Bureau. Over the year (compared to September 2006) producer prices have increased by 15.7%.

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

September 2007
compared to

3rd quarter of 2007
compared to

August 2007

September
2006

2nd quarter of 2007

3rd quarter of 2006

Industrial production
total of which:

0.0

15.7

1.8

16.7

sold on the domestic market

0.4

18.9

3.5

19.4

exported

-0.5

11.3

-0.6

13.1

Compared to August, the overall level of producer prices in September was mostly raised (by 0.8 percentage points) by the price increase in the manufacture of food products and beverages (mainly in the operation of dairies and cheese making). At the same time, in some industries decrease in prices was observed. Decrease in the manufacture of wood and of products of wood except furniture decreased the overall level of producer prices by 0.4 percentage points, in the manufacture of non-metallic mineral products – by 0.2 percentage points.

Over the year the price increase in the manufacture of wood and of products of wood except furniture left the biggest impact on the overall level of producer prices, increasing it by 4.6 percentage points. The overall level of producer prices was raised by the following price increases: 3.3 percentage points in the manufacture of food products and beverages and 2.6 percentage points in the electricity, gas, steam and hot water supply.

Compared to the 2nd quarter, in the 3rd quarter of 2007 producer prices increased by 1.8%. Prices skyrocketed in the manufacture of pulp, paper and paper products – by 8.3%, in the manufacture of furniture; manufacturing n.e.c. – by 6.8%, in mining and quarrying – by 5.1%, in electricity, gas, steam and hot water supply – by 4.4%. At the same time producer prices decreased in the manufacture of electrical machinery and apparatus n.e.c. – by 0.9%.

Compared to the corresponding period of the last year, in the 3 rd quarter this year producer prices in total rose by 16.7%. The largest price increase was observed in the manufacture of wood and of products of wood except furniture – by 29.8%. Significant producer price increase was observed in the manufacture of non-metallic mineral products – by 24.6%, in electricity, gas, steam and hot water supply – by 20.6%.

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