Latviski English По-русски
Monday 21.05.2018 | Name days: Ingmārs, Ernestīne, Akvelīna

Average level of consumer prices in Latvia up 2%

(No Ratings Yet)

Baltic news, News from Latvia, BNN.LV, BNN-NEWS.COM, BNN-NEWS.RUCompared to April 2017, the average level of consumer prices rose by 2.0 % in April 2018. Prices of goods grew by 1.5 % and prices of services by 3.3 %.

Compared to 2015, consumer prices have risen by 5.5 % in April 2018. Prices for goods increased by 4.6 % and prices of services by 7.9 %, according to data from the Central Statistical Bureau of Latvia.

Compared to April 2017, the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to housing, goods and services related to transport, alcoholic beverages and tobacco products, as well as health care in April 2018.

Just like the year before, major influence on the annual inflation was exerted by both goods and services related to transport and goods and services related to housing.

Within the group of food and non-alcoholic beverages, the greatest upward impact on the price changes during the year was exerted by the prices of butter (up by 24.8 %), sour cream (10.4 %), milk (7.9 %), and kefir (8.6 %). Increase was also observed in prices of pork (of 8.8 %), fresh fruit (5.2 %), eggs (12.2 %), meat products (5.8 %), bakery products (2.6 %), fruit and vegetable juices (6.8 %), and bread (1.4 %). Reduction, in turn, was registered in prices of fresh vegetables (of 16.9 %), sugar (36.5 %), coffee (5.9 %), and vegetable oil (7.4 %).

The average level of prices of alcoholic beverages and tobacco products went up by 3.6 %. Prices of alcoholic beverages rose by 3.7 %; main increase was recorded in prices of spirits. Prices of tobacco products grew on average by 3.3 %.

Prices of goods and services related to housing increased by 3.1 %. Rise was recorded in prices of solid fuels, maintenance charges in multi-occupied buildings, as well as prices of services for the maintenance and repair of the dwelling, heat energy, and refuse collection.

Within the health care group, the average level of prices went up by 3.8 %, Rise was registered in prices of dental services, pharmaceutical products, and prices in medical specialist practices.

Within the group of goods and services related to transport, increase was recorded in prices of fuels for transport (of 7.6 %), of which prices of diesel grew by 9.2 % and of petrol by 7.1 %, while prices of auto gas fell by 2.9 %. Growth was also recorded in prices of maintenance and repair of personal transport equipment. In its turn, prices of passenger transport by air fell.

Among other commodity groups, the most significant growth was recorded in prices of motor vehicle insurance, catering services, footwear, as well as telecommunication services and television subscription fee. Decline, in turn, was registered in prices of articles for personal hygiene and beauty products, as well as household cleaning and maintenance products.

In April, the greatest pressure on the consumer price changes was put by the growth in prices of clothing and footwear, furnishings, as well as the reduction in prices of goods and services related to transport, food and non-alcoholic beverages, prices in miscellaneous goods and services group, prices of alcoholic beverages and tobacco products.

As a result, compared to March 2018, the average level of consumer prices rose by 0.2 % in April 2018. Prices of goods increased by 0.3 %, while the average level of service prices did not change.

Over the month, prices of food and non-alcoholic beverages dropped by 0.4 %. Poultry prices (drop of 2.9 %) had the most significant lowering impact on the average price level within the group. Decrease was recorded in prices of cheese and curd (of 2.7 %), butter (8.2 %), sour cream (2.3 %), fresh fruit (2.8 %), dried, salted or smoked meat (0.8 %), eggs (2.8 %), bread (1.1 %), pasta products (5.1 %), and sugar (4.0 %). Just like prior, as yield of the new season entered the market, rise was observed in prices of fresh vegetables (6.8 %). As sales campaigns ended, increase was recorded in prices of pork (of 1.9 %), coffee (1.2 %), and meat products (2.0 %).

The average level of alcoholic beverage and tobacco product prices fell by 0.7 %. Prices of alcoholic beverages dropped by 1.1 %, which was mainly influenced by the sales campaigns. The average level of tobacco product prices did not change.

As goods of the summer season kept entering the market, prices of footwear in April grew by 17.6 % and prices of garments rose by 6.0 %.

Prices of furnishings went up by 1.1 %. Along with the ending sales, rise was observed in prices of household cleaning and maintenance products. Growth was recorded also in the average level of furniture and dish prices.

Prices of goods and services related to transport reduced by 0.9 %, which was mainly affected by the decline in prices of spare parts and accessories for personal transport, fuels for transport (0.5 %), and passenger transport by air.

Within the group of miscellaneous goods and services, the average level of prices dropped by 1.4 %; the drop due to sales was mainly influenced by prices of articles for personal hygiene and beauty products.

The most notable rise among other commodity groups was recorded in prices of catering services and package holidays. Reduction, in turn, was registered in prices of flowers.

Leave a reply

Riga City Council changes internal rules again; each deputy given ten-minute limit for questions

On Monday, 21 May, Riga City Council changed its rules for Q&A sessions, providing a ten-minute limit for each deputy to ask questions. This is the third time the city council has changed its internal rules.

Committee head: EU funds would help secure meaningful education for youngsters

«Seven to eight thousand youngsters leave Latvia every year. While ten years ago 13 to 25 year old youngsters formed 20% of the country’s population, their proportion dropped to 13% in 2017,» says Saeima’s European Affairs Committee chairperson Lolita Čigāne.

River Emajõgi guarded by mass protest against pulp mill

In Tartu, human chain has been formed by about 4 500 people in protest against the plan to build a billion-euro pulp factory near the River Emajõgi, the organisers of the event have stated.

Association: loan repayment indexes improve in non-bank consumption loan segment

In 2017, members of Latvian Association of Alternative Financial Services issued in loans EUR 180.5 million. Compared to 2016, this is an increase of 6.9%. Members’ credit portfolio was EUR 88.7 million at the end of 2017, which is 8.1% more than a year ago.

Estonian producer prices higher by 2.1 on year, due to energy supplies

Estonian producer price index of industrial output increased by 2.1% between April 2017 and April this year, Estonian statisticians have estimated.

Vitol: limitation of shell companies’ activities cannot possibly affect transit companies

Changes to the law that provide restrictions for shell companies cannot possibly affect transit companies. Because of that, claims voiced prior to adoption of said amendments and their possible impact on transit sector seem rather confusing, says Vitol Baltic chairman Robert Kirkup.

De Facto: Latvian minister’s business partner manufactures ships for Russian army

Latvian Agriculture Minister Jānis Dūklavs’ business partner in Piebalgas alus brewery – Russian businessman Igor Shekhelev – manufactures ships for the Russian army, as reported by De Facto programme of LTV.

Property-sharing site Airbnb agrees to share owner income with tax authority

The home-renting service Airbnb has agreed to automatically report homeowners' income to tax authorities in Denmark in a landmark agreement, which is expected to make it easier to detect tax evasion by homeowners, who are renting out rooms and houses on the website.

Latvia shipped 11.7% more oil products in Q1 2018

As part of the postponed excise tax payment regime, the volume of oil products shipped from Latvia in Q1 2018 was 13,869 or 11.7% larger than the one recorded in the same period of 2017, according to data compiled by the State Revenue Service.

What have Italian makers of government agreed on?

In Italy, the two populist parties preparing form a national government have published joint policies including tax cuts, a guaranteed basic income for the poor and deportations of 500,000 migrants.

Thunderstorms expected in Latvia this week as well

On Monday, 21 May, weather in Latvia will not change much – dry and not cloudy for the most part. On Tuesday and Wednesday, however, precipitation areas will pass through Latvia, bringing heavy rainfall, thunderstorms and strong wind, as reported by Latvia’s Environment, Geology and Meteorology Centre.

Week in Lithuania. Liberal Movement to turn to court over VSD statements

The board of Lithuania's Liberal Movement has decided to turn to court over information published by the State Security Department, allegedly damaging the party's reputation.

BNN summary of the week: distorted state administration, Liepājas metalurgs recovery, and Latvia unemployment level

BNN offers a summary of this week’s topical news in a variety of categories: Change; Growth; Business; Fight; Future; Opinion

New approach to combating drunk drivers – forced correction programme

Latvia’s Justice Ministry reports that the administrative penalties reform proposes introducing stricter punishments for drunk drivers. If a person is caught drunk driving, their license would be confiscated. On top of that, to recover the license, that person would have to pass a social correction programme.

Latvian MEP to «cause a scandal» where he can to stop school reform

Members of the European Parliament Andrejs Mamikins and Miroslavs Mitrofanovs have gathered support from 114 of their fellow MEPs to request the Latvian government and Saeima to review the already approved amendments to the Education Law and General Education Law that govern realization of the national minorities’ school reform, as confirmed by Mamikins.

Germany criticises U.S. attempts to block Nord Stream 2 gas pipeline

As to the controversial Nord Stram 2 Russian gas pipeline via Baltic sea to Germany, the German Economy has evaluated that American attempts to block it could be aimed at increasing U.S. a planned Russia-Germany gas pipeline to increase its own energy exports.

Number of complaints about taxi services at Riga International Airport on a rise

The number of complaints about taxi services at Riga International Airport continues to increase, said the airport’s board chairperson Ilona Līce in an interview to 900 seconds programme of LNT.

Ryanair sees Estonia as important market, considers local hub option

Irish low-fare airline Ryanair considers Estonia an important market, the firm's chief executive Michael O'Leary noted while visiting Tallinn earlier in the week.

Minister: UN should act to call violators of international law to justice

«The United Nation Security Council, as the main institution maintaining peace and security, has a special responsibility, because its activities affect compliance with international law,» says Latvia’s Foreign Affairs Minister Edgars Rinkēvičs.

Banks to report private persons whose account turnover exceeds EUR 15,000

From 18 May onward, banks will have to report private persons whose annual account turnover exceeds EUR 15,000, as provided by the Cabinet of Ministers’ supported order, under which the State Revenue Service is to be provided with information about a private person’s turnover and balance.

Baltic States request expanding NATO’s battalion with air and naval forces

Baltic States plan to request expanding international NATO battalion with air and naval forces, as confirmed by Lithuanian Foreign Affairs Minister Lino Linkevičiaus, who met with US President’s National Security Advisor John R. Bolton in Washington alongside his Latvian and Estonian colleagues.

Poland uncovers Russian hybrid war networks

Poland has detained a Russian national suspected of working with accomplices to stimulate social tension with neighbouring Ukraine and neutralised two Russian hybrid war networks, the Polish Internal Security agency has stated.

Weather in Latvia to remain moderately warm in Latvia; precipitation to be low

On Friday, 18 May, some areas of Latvia will experience thunderstorms. However, starting from the end of the week, weather will become dry again with little precipitation. Rain cloud will form above Latvia in the second half of the week, as reported by Latvian Environment, Geology and Meteorology Centre.

Construction output rise in Latvia was more rapid than EU’s average level in Q4 2017

Compared to last year’s October-December, Latvia’s construction output in Q4 2017 grew 19.9%, which is a much more rapid rise than the average in the European Union, according to data published by Eurostat on Thursday, 17 May.

Latvian Saeima’s committee does not support Kušners’ re-approval in Bank of Latvia council

On Thursday, 17 May, Saeima’s Budget and Finance Committee decided not to recommend Edvards Kušners for a repeated term in the council of the Bank of Latvia.