On producer price changes in June 2007

20.07.2007

Compared to May, producer prices in Latvian industry in June 2007 rose by 0.4%. Compared to June 2006 producer prices have increased by 17.7%.

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

June 2007 compared to

2nd quarter of 2007 compared to

May 2007

June 2006

1st quarter of 2007

2nd quarter of 2006

Industrial production, total
of which:

0.4

17.7

4.4

17.8

sold on the domestic market

0.9

18.8

4.2

18.3

exported

-0.2

16.1

4.7

17.1

Compared to May, the overall level of producer prices in June was mostly raised by the following price increases: in the manufacture of food products and beverages (by 0.3 percentage points), as well as in the manufacture of wood and of products of wood and in the electricity, gas, steam and hot water supply (by 0.2 percentage points in each activity).

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 6.1 percentage point. The rise in the tariffs of electricity, gas, steam and hot water supply increased the overall level of producer prices by 2.5 percentage points. The rise in prices of the manufacture of food products and beverages increased the overall level of producer prices by 2.1 percentage point, in the manufacture of non-metallic mineral products – by 1.2 percentage points, in publishing, printing and reproduction of recorded media, in the manufacture of fabricated metal products except machinery and equipments as well as in the manufacture of furniture and manufacturing not classified otherwise – by 0.5 percentage points in each of activities.

Compared to the 1st quarter, in the 2nd quarter of 2007 the producer prices on average increased by 4.4%. In the manufacture of non-metallic mineral products prices went up more rapidly – by 11.5 %, in collection, purification and distribution of water – by 6.1 %, in the manufacture of rubber and plastic products – by 5.6%, in the manufacture of wood and of products of wood except furniture – by 5.0%. The producer prices in the manufacture of wearing apparel, dressing and dyeing of fur, as well as in publishing, printing and reproduction of recorded media decreased respectively by 2.2 and 0.8%.

Compared to the corresponding period of the previous year, in the 2nd quarter of this year the producer prices on average have increased by 17.8%. The highest price increase (by 33.9%) was in the manufacture of wood and of products of wood except furniture. The producer prices in the manufacture of non-metallic mineral products increased noticeably (by 26.3%), in collection, purification and distribution of water the tariffs rose by 21.2%, in electricity, gas, steam and hot water supply – by 19.0%.

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