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Wednesday 26.10.2016 | Name days: Kaiva, Amanda, Amanta

Average consumer price level drops 0.3% in Latvia

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Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUThe average level of consumer prices had decreased by 0.3 % in Latvia in January 2016 in comparison to January 2015. Prices of goods decreased by 1.2 %, while prices of services increased by 2.1 %.

During the last twelve months, the average level of consumer prices, compared to the previous twelve months, grew by 0.2 %.

The greatest downward impact on the average level of consumer prices in January 2016 as compared to the same month of 2015, was done by goods and services related to housing, food and non-alcoholic beverages, goods and services related to transport, whereas the strongest upward impact was done by alcoholic beverages and tobacco products, health services, restaurant and hotel services.

The average level of food prices in January 2016 in comparison with the corresponding month of the previous year went down by 0.3 %. The price reduction was mostly caused by milk and dairy products, mainly by sour cream and kefir. The prices of cheese and curd, milk and yoghurt also decreased. Butter, coffee, bakery products became cheaper, whereas the prices increased for vegetables, poultry, pasta, eggs, flours and other cereals, chocolate.

The average price level of alcoholic beverages has increased by 3.0 %. This was essentially caused by the rise in prices of beer. Spirits and wine were the most expensive. Prices of tobacco products went up 2.0 %.

During the year prices of goods and services related to housing decreased by 3.9 %. Heat energy, natural gas, electricity became cheaper, whereas the prices for maintenance and repair of the dwelling services as well as maintenance charges in multi-occupied buildings went up.

The average level of prices for health services rose by 2.2 % that was caused by the increase of prices for pharmaceutical products and dental services.

In the group of transport the price level went down by 0.5 % on average. The average price level for fuels for transport had decreased by 6.6 %, which was most significantly affected by the drop of prices for diesel and liquid petroleum gas. Compared to the previous year, cheaper were services of passenger transport by air, spare parts and accessories for personal transport equipment, whereas more expensive became services of passenger transport by bus and tram, maintenance and repairs services of personal transport equipment, road-worthiness tests of motor vehicles.

As compared to January of the previous year, prices for restaurant and hotel services rose by 1.9 %. In cafes and restaurants prices went up by 2.1 %, in canteens – by 2.3 %. The average price level for hotel services had decreased by 5.8% during the year.

In other consumption groups the most significant reduction of prices was for package holidays, cleaning and maintenance products, clothing, personal hygiene and beauty products.

Compared to the December 2015, the average consumer price level had decreased by 0.6 % in January 2016. Prices of goods had reduced by 0.7 %, but prices of services – by 0.2 %.

The greatest impact on the price changes in January had the drop in prices for clothing and footwear, goods and services related to transport, alcoholic beverages and tobacco products, goods and services related to housing, as well as the rise in prices of personal care goods and services, food and non-alcoholic beverages.

Prices for food had increased by 0.3 % during the month. Price changes in the group of food were mainly affected by the rise in prices for vegetables by 7.3 %, prices increasing mainly for tomatoes and sweet pepper. Affected by the end of sales, the average price level increased for poultry, coffee, pasta, vegetable oil, chocolate. Whereas, prices for dried, salted or smoked meat, fruit, milk products, bakery products and pork decreased.

Affected by the end of sales, the average price level of alcoholic beverages and tobacco products had decreased by 1.0 %. Prices for tobacco products went up by 0.9 %.

Affected by discounts and sales that is inherent in January, the prices of clothing dropped by 7.5 %, the prices of footwear – by 4.1 %.

During the month the average level of electricity prices decreased by 1.8 %, affected by the drop in trade prices for some Latvenergo Elektrum tariff plans as of 1 January 2016. Cheaper was natural gas. Prices for maintenance charges in multi-occupied buildings increased.

In transport group the average price level went down by 1.9% that was mainly affected by the drop in prices for fuels for transport by 3.3 %. Under the influence of seasonal factors the prices reduced for passenger transport by air and water. As of 1 January 2016, prices increased for road-worthiness tests of motor vehicles.


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