Price of necessities rising, luxuries falling

RIGA - After almost a year, inflation has returned to Latvia with consumer prices in September increasing 0.4 percent year-on-year, show data at the Central Statistical Bureau, reports Nozare.lv. This past August, Latvia registered 0.3 percent deflation.
In September, year-on-year, prices for goods increased 2 percent, whereas prices for services were down 3.5 percent. Compared to the previous twelve-month period, the price level in Latvia over the past twelve months decreased 1.8 percent.

Compared to August, consumer prices in September also increased by 0.4 percent - prices for goods grew 0.6 percent, whereas prices for services remained unchanged. In September, increasing prices of clothing, footwear and food, as well as lower prices for goods and services related to housing had the major impact on consumer price change.
In the food group, price increases were recorded for fresh vegetables (10.1 percent), cereal products (5.1 percent), milk and dairy products (1.9 percent), non-alcoholic beverages (1.5 percent), fats and oils (2.4 percent).

The end of sales and the arrival of new seasonal articles caused prices for footwear and apparel to increase by 7.8 percent and 5.6 percent, respectively. Prices also increased for educational, recreational, cultural and sports services as well as for individual care goods, flowers, books, stationery and alcoholic beverages.
The major contribution to the price decrease in the housing group came from heat energy, where prices on the average dropped by 3.9 percent. Natural gas prices decreased 4.6 percent, liquefied gas prices fell 1.8 percent, while prices of solid fuels rose by 3.5 percent.

Prices also decreased for package holidays and sanatorium services as well as for fruit, pharmaceutical products, pet food, airline tickets, used cars, bicycles and TV, video, audio, photo and data processing equipment.
Within the first nine months this year, consumer prices grew by 1.8 percent (September of this year compared with December 2009).