On producer price changes in January 2007

21.02.2007

Compared to December 2006, producer prices in Latvian industry in January 2007 rose on average by 3.4%, according to the Central Statistical Bureau. Over the year (January 2007 over January 2006) producer prices have increased by 15.5%.

An analysis of producer prices depending on the direction of product sales shows that in January this year prices for the products sold on the domestic market rose more rapidly:

(in per cent)

Price changes in January 2007 compared to

December 2006

January 2006

Industrial production, total
of which:

3,4

15,5

sold on the domestic market

4,5

15,8

exported

1,9

15,2

Compared to December, the overall level of producer prices in January 2007 was mostly raised by the rise of 0.8 percentage points in the tariffs of electricity, gas, steam and hot water supply (specifically in electricity production) as well as by price increases in the manufacture of wood and of articles of wood except furniture (mainly in sawing, planning and impregnation). The overall price level was raised by 0.7 percentage points due to price increases in publishing, printing and reproduction of recorded media and by 0.2 percentage points in each of the following activities: in the manufacture of food products and beverages, in the manufacture of electrical machinery and equipment and in the manufacture of furniture and manufacturing n.e.c.

Over the year the increase in the tariffs of electricity, gas, steam and hot water supply has made the greatest impact on the overall level of producer prices raising it by 2.5 percentage points. The overall price level was mostly raised due to the following price increases: 4.8 percentage points in the manufacture of wood and of articles of wood (except furniture), 1.7 percentage points in the manufacture of food products and beverages, 0.7 percentage points in publishing, printing and reproduction of recorded media and 0.6 percentage points in the manufacture of non-metallic mineral products.

Similarly as in previous years, the weights used in the calculations of the producer price index were updated in January 2007; the breakdown of the products sold in 2005 that align with the structure of the Statistical Classification of Economic Activities (NACE Rev.1.1) was 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 2006.

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