Analytics, Inflation, Latvia, Markets and Companies

Previous year was characteristic with rise in the food prices. Prices of milk grew by 13.7%, resulting in an increase in prices of dairy products – sour cream (26.5%), kefir (16.8%), butter (55.8%), curd (5.8%), cream (17.1%), and cheese (2.6%). Sharp upturn was recorded also in prices of eggs (24.7%). Increase was observed in prices of dried, salted or smoked meat (4.1%), pork (6.0%) and poultry (2.6%). Price rise witnessed also apples (34.1%), potatoes (12.0%) and bakery products (2.5%).

However, reduction was registered in prices of several food products: sugar (26.1%), cucumbers (18.7%), ground coffee (7.2%), grapes (16.9%), fresh or chilled fish (4.3%) and sweet pepper (10.2%). The average level of food and non-alcoholic beverage prices grew by 3.8% over the year.

During the year, the expenses of car owners rose notably, which was caused by the significant increase in prices of motor vehicle insurance (of 64.1%), fuels for transport (4.8%), of which petrol of 6.3% and diesel of 4.4%. Growth was observed also in prices of maintenance and repair of personal transport equipment.

The average level of prices of goods and services related to housing as well as health care increased – by 2.0% and 3.0%, respectively. Rise was recorded in prices of heat energy (3.5%), solid fuels (6.5%), natural gas (9.8%), refuse collection (6.2%), as well as services for the maintenance and repair of the dwelling (3.4%). Upturn in prices of health care was influenced by the growth in prices of pharmaceutical products (of 2.8%) and dental services (5.7%) as well as prices in medical specialist practices (2.6%).

Within the miscellaneous goods and services group, the average level of prices grew by 7.1%, which along with motor vehicle insurance price rise was mostly due to the increase in prices of articles for personal hygiene and beauty products.

In its turn, reduction in the average level of prices was observed within the furnishings group – of 1.8%. Decline was registered in prices of household cleaning and maintenance products (of 6.1%), household textiles, household furniture, and furnishings.

Among other commodity groups, the most significant growth was recorded in prices of second-hand motor cars, tobacco products, catering services, and telecommunication services. Decline, in turn, was observed in prices of passenger transport by air and passenger transport by road, spirits, beer, and footwear.

Consumer price changes in December 2017 by commodity group (as per cent, compared to the corresponding period)

In December, both rise in prices of separate goods and services and seasonal sales and discounts were observed. As a result, the average level of consumer prices did not change during the month. Prices of goods fell by 0.2%, whereas prices of services grew by 0.5%.

In December 2017, like in the December of 2016, the greatest pressure on the consumer price changes was put by the growth in prices of goods and services related to transport, as well as food and non-alcoholic beverages. In the same time, the price rise was compensated by the seasonal sales of clothing and footwear, furnishings, and articles for personal hygiene and beauty products.

In December, the average level of food and non-alcoholic beverage prices grew by 0.4%. Like the year before, in December 2017 the greatest pressure on the consumer price changes within the group was put by the growth in prices of fresh vegetables (of 5.8%). However, as prices of some vegetables, such as tomatoes and sweet pepper, went up sharply in November, the price rise recorded in December 2017 was lower than that registered in December 2016. Over the month, discounts led to the reduction in prices of fish and seafood, as well as sugar and coffee, prices of which rose in December 2016 as the sales ended. For the third month in a row, prices of eggs kept growing (compared to the previous month by 0.8% in October, by 9.3% in November and by 7.2% in December). Increase was registered also in prices of milk products, poultry, pork, oils and fats, bread, as well as fruit and vegetable juices. Discounts, in turn, led to the reduction in prices of fresh fruit, chocolate, flours and other cereals.

Unlike the year before, in December 2017 prices of alcoholic beverages fell due to sales campaigns (0.9%). Decline was observed in prices of beer and spirits.

Similar to the past years, the average level of prices within the clothing and footwear group dropped. Affected by seasonal sales, prices of footwear diminished by 7.0% and prices of garments by 1.9%.

Prices of furnishings declined by 1.7%. Under the influence of sales, prices of household cleaning and maintenance products, mainly washing powder and liquid detergents for linen, fell by 4.9%. Reduction was registered in prices of non-electric kitchen utensils and articles.

In December 2017, like in the previous year, prices of goods and services related to transport increased (by 1.5%), which was mainly influenced by the rise of 1.9% in prices of fuels for transport, of which petrol (of 2.1%) and diesel (2.1%). Prices of fuels for transport have been growing every month since August – by 0.3% in August, by 3.8% in September, by 2.2% in October and by 1.4% in November. In December, price rise was observed in passenger transport by air and passenger transport by sea.

Within the miscellaneous goods and services group, prices of articles for personal hygiene and beauty products under the influence of sales fell by 3.0%.

Among other commodity groups, the most significant growth was recorded in prices of heat energy, package holidays and pet food.

Information on consumer price index changes in January 2018 will be published on 12 February.

More detailed information on consumer price changes is available in the CSB database section Consumer Prices.

 Average retail prices of selected food products by months of 2017

* The annual inflation reflects consumer price changes, comparing the average price level in the comparison month with the average price level in the corresponding month of the previous year.