Annual inflation in Latvia has reached 21.5%

RIGA -  In July 2022, compared to July 2021, the average level of consumer prices in Latvia increased by 21.5 percent, according to the latest data of the Central Statistical Bureau.

Compared to July 2021, in July 2022 the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to housing, food and non-alcoholic beverages, goods and services related to transport, within the miscellaneous goods and services group, restaurant and hotel services, goods and services related to recreation and culture, alcoholic beverages and tobacco products, health care.

Over the year, prices within the group of food and non-alcoholic beverages increased by 24.3 percent. Price rise for cheese and curd (33.7 percent), milk products (39.3 percent), milk (36.6 percent) and yoghurt (29.9 percent) had the strongest upward influence on the average price level within the group. Prices of bread grew by 28.3 percent, of bakery products – by 20.6 percent, of flours and other cereals – by 56.8 percent, of pasta products – by 35.5 percent, of rice – by 30.9 percent. Increase was observed in prices of dried, salted or smoked meat (20.2 percent), poultry (24.8 percent), meat preparations (21.2 percent), pork (10.8 percent) and beef (32.7 percent). Over the year upturn was registered in prices of coffee (32.2 percent), ice cream (32.1 percent), butter (36.1 percent), vegetable oil (47.5 percent), fresh vegetables (12.2 percent), fresh fruit (13.1 percent), potatoes (7.5 percent), as well as dried, other preserved or processed vegetables (14.1 percent). Increase was observed in prices of chocolate (24.4 percent), eggs (20.4 percent), sugar (36.7 percent), fresh or chilled fish (34.7 percent), preserved or processed fish and seafood-based preparations (17.8 percent), sauces and condiments (35.1 percent), fruit and vegetable juices (12.8 percent), jams and honey (18.1 percent), salt and spices (29.6 percent), ready-made meals (25.9 percent), margarine (34.8 percent), olive oil (20.2 percent), soft drinks (13.6 percent), frozen fish (22.5 percent).

The average level of alcoholic beverage and tobacco product prices rose by 6 percent. As prices of spirits, beer and wine went up alcoholic beverages became more expensive (6.3 percent). Over the year average increase of 5.5 percent was observed in prices of tobacco products.

Average level of prices of goods and services related to housing rose by 50.7 percent. Over the year, the most significant rise in the prices was for natural gas, solid fuels, electricity and heat energy. Increase was recorded in refuse collection, rentals for housing, water supply, sewage collection, service for the maintenance and repair of the dwelling prices, as well as in prices of materials for the maintenance and repair of the dwelling.

The average level of health care prices grew by 7.1 percent. Over the year, prices of dental services, pharmaceutical products, medical services and prices in medical specialist practice went up.

Prices of goods and services related to transport increased by 28.8 percent, which was determined by the rise in prices of fuels for transport by 51.5 percent. Prices of diesel rose by 57.4 percent, of petrol – by 45.8 percent, but of auto gas – by 30.1 percent. Upturn was recorded in prices of maintenance and repair of personal transport equipment, spare parts and accessories for personal transport equipment, second-hand motor cars, passenger transport by air and passenger transport by road.

Prices of goods and services related to recreation and culture rose on average by 7.2 percent, which was mainly influenced by the increase in prices of pet food, package holidays, recreation and sports services, flowers, cultural services, as well as stationery and drawing materials.

The average level of restaurant and hotel service prices went up by 15 percent. Increase over the year was observed in prices of catering services, of which prices of restaurant and cafe services rose by 13.3 percent, of canteen services – by 13.3 percent and of fast food services – by 16.7 percent. Prices of hotel services also went up.

Within the miscellaneous goods and services group, prices increased by 12.5 percent, which was affected by the rise in prices of articles for personal hygiene and beauty products. Motor vehicle insurance, hairdressing and personal grooming establishment services and financial services were more expensive as well.

Among other commodity groups, the most notable rise was registered in prices of garments, household cleaning and maintenance products, household furniture, telecommunication services.

Compared to June 2022, in July 2022 the average level of consumer prices increased by 2.2 percent. The greatest pressure on the price changes was put by the rise in prices of goods and services related to housing, food and non-alcoholic beverages, within the miscellaneous goods and services group, furnishings, restaurant and hotel services, as well as drop in prices of clothing and footwear, goods and services related to transport.

Over the month, prices of food and non-alcoholic beverages grew by 1.7 percent. Due to the end of promotions, rise was recorded in prices of bread (of 6.6 percent), dried, salted or smoked meat (3 percent), coffee (3.3 percent), sour cream (5.8 percent). As the new potato crop continued to enter the market, prices of potatoes increased by 6.4 percent. Upturn was recorded in prices of bakery products (1.7 percent), poultry (1.8 percent), meat preparations (3 percent), sauces and condiments (7.7 percent), sugar (4.3 percent), rice (5.8 percent), vegetable oil (3.5 percent), beef (5.6 percent), as well as dried, other preserved or processed vegetables (4.7 percent). As the promotions ended, butter (4.1 percent), cheese and curd (1.1 percent), chocolate (2.7 percent), pasta products (4 percent) became more expensive. In turn, under the influence of seasonal factors fresh vegetables (4.7 percent) and fresh fruit (2.7 percent) had the most significant price drop within the group. Due to the discounts, prices of fresh or chilled fish fell by 5.7 percent and of sweets by 5.2 percent.

Prices within clothing and footwear group fell by 6 percent. Affected by discounts, the average level of prices of garments dropped by 5.2 percent, but prices of footwear – by 8.8 percent.

Average price level of goods and services related to housing rose by 10.6 percent, which was mainly influenced by higher natural gas tariffs as of 1 July. Considering the increase in the price of natural gas in the global market and high price of natural gas on the stock exchange, the average price level of natural gas rose by 74.8 percent. Upturn was registered in prices of electricity, solid fuels and heat energy. Maintenance charges in multi-occupied buildings, as well as refuse collection became more expensive.

Within the furnishings group prices rose on average by 1.8 percent. Due to the end of sales, increase was recorded in prices of household cleaning and maintenance products. Growth was also registered in prices of household furniture.

Goods and services related to transport became less expensive by 1.6 percent. Fuel for transport prices fell by 3.9 percent, as prices of petrol decreased - by 5.9 percent and of diesel - by 2.9 percent. In turn auto gas became more expensive by 0.6 percent. Increase was observed in prices of passenger transport by air and of maintenance and repair of personal transport equipment.

The average level of restaurant and hotel service prices went up by 1.8 percent. Prices of hotel services on average rose by 7.2 percent, of restaurant and cafe services – by 1.2 percent, of fast food services – by 2.2 percent.

Within the miscellaneous goods and services group, average level of prices increased by 2 percent, which was mainly affected by the end of sales for articles for personal hygiene and beauty products.

Among other commodity groups, the most notable rise was registered in prices of package holidays, beer, telecommunication services. In turn, due to the discounts, prices of toys fell.

Compared to 2015, in July 2022 consumer prices were 36.4 percent higher. Prices of goods increased by 39.1 percent and prices of services by 27.3 percent.