Consumers hit with rising prices

RIGA - Consumer prices in Latvia reached their highest point back in March 2009 and, although prices have not yet returned to that level, they are approaching it fast, the Central Statistical Bureau’s head Aija Zigure said, reports Nozare.lv. At the moment, consumer prices in Latvia are at the level of July 2009. Zigure said it was hard to predict when the prices could reach the March 2009 level, but she did say that this could happen already in February.

“I do not believe that there will be many retailers who will be able to absorb the increase in taxes at the expense of own profits or smaller revenues,” said Zigure, stressing that so far prices for basic consumer goods have been growing the fastest.
The consumer price index in March 2009 was 143.1, while in December 2010 the index was already at 140.
Zigure declined to comment how much consumer prices may have increased so far in January, but she said higher taxes should have definitely increased consumer prices.

The Statistical Bureau’s projection for 2011 states that consumer prices will increase 2.5 percent. Consumer prices in Latvia in 2010 increased 2.5 percent, the Bureau reports. Prices for goods increased 4.3 percent while prices for services decreased 2.1 percent.