Deflation trend may be near bottom

RIGA - Consumer prices in Latvia fell 2.7 percent in April year-on-year, consisting of a 1.5 percent fall in prices for goods and a 5.8 percent drop in prices for services, according to Central Statistical Bureau data, reports Nozare.lv. Compared to March 2010, the average consumer price level in April increased by 0.9 percent.  Prices of goods rose by 1.4 percent, whereas prices of services decreased by 0.4 percent.

Price growth for goods and services in housing, transport, food, clothing and footwear, and price decreases for telecommunication services had a major impact on consumer price changes in April.
Influenced by the rise of heat energy tariffs of 13.9 percent, the prices of goods and services related to housing maintenance, on average, rose by 4.1 percent. Prices of fuel, on average, grew by 3.1 percent, of which prices of petrol increased by 2.8 percent, but prices of diesel - by 4 percent. Prices of food products grew, on average, by 0.5 percent. Due to seasonal influence, prices of vegetables rose by 3.2 percent, but prices of fruit - by 2.5 percent. Prices of clothing increased by 1.4 percent, as prices of footwear were up by 2.2 percent, as the end of sales and the entry of new seasonal articles hit the market. Prices of pharmaceuticals and tobacco products rose.

The average consumer price level in March decreased 3.9 percent, compared to March 2009.