Annual average inflation in Latvia in 2016 at 0.1%

RIGA, Jan 11, BNS - The annual average inflation (12 months of 2015 against 12 months of 2016) in Latvia was 0.1 percent last year, according to the Latvian Central Statistical Bureau.

In December 2016 compared to December 2015, consumer prices in Latvia increased by 2.2 percent. Compared to November 2016, consumer prices were up 0.6 percent in December.

Compared to December 2015, in December 2016 the greatest pressure on the price changes was put by the rise in prices of food and non-alcoholic beverages, goods and services related to transport, prices in communication group, prices of health care, recreation and culture, alcoholic beverages and tobacco products, as well as by the drop in prices of goods and services related to housing.

Compared to the corresponding month of the previous year, in December 2016 the average level of food and non-alcoholic beverage prices grew by 4.8 percent. Prices of tobacco products rose by 5.2 percent. The average level of alcoholic beverage prices decreased by 0.6 percent, which was mainly affected by the drop in prices of beer.

Prices of goods and services related to housing fell by 0.7 percent. The decline was observed also in prices of heat energy, natural gas, and solid fuels. An increase, in turn, was recorded in maintenance charges in multi-occupied buildings, prices of refuse collection, sewage collection, and water supply.

The average level of health care prices grew by 2.9 percent, which was mainly due to the rise in prices of pharmaceutical products and dental services, as well as prices in medical specialist practice.

Prices of goods and services related to transport went up by 3 percent, which was mainly affected by the increase in prices of fuels for transport (by 6.7 percent). The increase was registered also in prices of maintenance and repair of personal transport equipment. The reduction was observed in prices of passenger transport by sea as well as spare parts and accessories for personal transport equipment.

The average level of telecommunication service prices grew by 5.5 percent, which was mainly because of the rise in prices of wired and wireless telephone services. Prices of Internet access services fell.

Prices of cultural services went up by 3.2 percent. The increase was recorded also in prices of fiction books and package holidays. Decrease, in turn, was registered in prices of audio-visual equipment.

Within other commodity groups, the most significant growth was recorded in prices of catering services, financial services, articles for personal hygiene and beauty products, while the most notable decline was registered in prices of non-durable household goods.

In 2016, administered prices decreased by 0.4 percent, while non-administered prices grew by 2.5 percent.

In 2015, the annual average inflation in Latvia was 0.2 percent.