In May of this year compared to April, consumer prices in Latvia increased by 4%, but during the year – in May of this year compared to May of 2021 – consumer prices increased by 16.9%, according to the data of the Central Statistics Office.
At the same time, the 12-month average level of consumer prices, compared to the previous 12 months, increased by 7.8% in May.
The most significant impact on price changes in May this year compared to April was the increase in prices for housing-related goods and services, which reached the fastest monthly increase in the last 28 years, for food and non-alcoholic beverages, for transport-related goods and services, in the group of various goods and services, for housing equipment , restaurant and hotel services, as well as goods and services related to recreation and culture.
During the month, the prices of food and non-alcoholic beverages increased by 1.9%.
Poultry meat (+15.1%) had the most significant effect on the increase in the average price level in the relevant group. Bread was also more expensive (+4%), which was mainly influenced by stock closings. The price increase was for dried, salted or smoked meat (+3.9%), cheese and cottage cheese (+3.7%), confectionery (+3.8%), flour and other cereals (+6.7%), eggs (+7.3%), meat products (+5.3%), as well as sour cream (+4%).
At the end of the promotions, prices also increased for chocolate (+3.5%), dried fruits and nuts (+4.8%). Dried, smoked or salted fish (+7.1%), canned or processed fish and seafood products (+2.7%) and frozen fish (+6.2%) were more expensive. Pasta (+2.7%) and milk (+1%) also became more expensive.
On the other hand, the prices of fresh vegetables (-6.5%) and fresh fruits (-3.1%) decreased in May compared to April. Coffee was cheaper (-1.5%) under the influence of shares.
The average price level of housing-related goods and services increased by 15.9% during the month, which is the fastest increase in the group during the month in the last 28 years.
CSB states that from January 1 to April 30, 2022, fee concessions were applied in accordance with the Law on Measures to Reduce the Extreme Increase in Energy Resource Prices for electricity, natural gas and thermal energy. After these fee concessions ended, as of May 1, the fee for electricity system services and mandatory procurement (OMI) and capacity components was again included in the electricity bill, as a result of which the average level of electricity prices increased by 59.7%.
Until now, thermal energy had a price ceiling set within the framework of incentives, but taking into account the end of the incentives period, thermal energy became more expensive by 15.4%. Since May 1, the fee compensation for natural gas, which previously applied to users with a certain consumption, was no longer valid, therefore the average price level of natural gas increased by 26.3%. Solid fuel, housing rent, as well as liquefied gas in cylinders were more expensive.
In the housing equipment group, prices increased by an average of 2.8% during the month. During the month, due to the closing of shares, the prices of household cleaning and care products, as well as crockery, increased. Prices increased for home furniture, non-electrical kitchen utensils and items.
Transport-related goods and services became more expensive by 2.8% during the month. Fuel became more expensive by 4.8%, with diesel fuel prices increasing by 4.2%, gasoline – by 6.2% and auto gas – by 1.3%. Prices went up for tires as well as used cars. Passenger air transportation was cheaper.
The prices of goods and services related to recreation and culture rose by 1.2% during the month. At the end of the promotions, toys and pet food were more expensive. The average price level increased for fiction books, personal computers and flowers.
The average price level of restaurants and hotel services increased by 2.7% during the month. Hotel services became more expensive on average by 13.5%, restaurant and cafe services – by 1.5%, and canteen services – by 2.8%.
In the group of miscellaneous goods and services, prices increased by 2.3%, which was affected by the closing of shares in personal care products and beauty products.
In the other consumption groups, the most significant price increase during the month was for clothes, beer, wine, tobacco products, dental services, and pharmaceutical products. On the other hand, the prices of strong alcoholic beverages decreased.
On the other hand, the biggest impact on changes in the average consumer price level in May 2022, compared to May 2021, was the increase in prices for goods and services related to housing, food and non-alcoholic beverages, goods and services related to transport, in the group of various goods and services, restaurants and hotel services, alcoholic beverages and tobacco products, health care, home furnishings.
In the group of food and non-alcoholic beverages, prices increased by 18.2% during the year.
Cheese and cottage cheese (+27.8%), dairy products (+28.8%), milk (+31.2%) and yogurt (+20.8%) had the most significant impact on the increase in the average price level in the mentioned group. Prices increased for bread (+17.1%), flour and other cereals (+52.7%), confectionery (+13.5%), pasta (+38.8%), rice (+30.5%) ) and breakfast cereals (+10.4%).
During the year, prices also increased for poultry (+33.6%), dried, salted or smoked meat (+10.6%), meat products (+19.2%), pork (+7.9%), beef (+17.4%). Potatoes (+60.3%), fresh vegetables (+7.3%) and fresh fruits (+7.2%) were more expensive. The price increase was for coffee (+16.5%), ice cream (+22.4%), vegetable oil (+35.0%), butter (+23.2%), fresh or chilled fish (+33.2%) ), eggs (+12.5%), sugar (+25.3%), chocolate (+11.3%), canned or processed fish and seafood (+15.8%), jam and honey (+ 14.9%), fruit and vegetable juices (+9.4%), sauces and condiments (+18.3%), salt and spices (+20.2%).
Also, the price of frozen fish (+20.9%), dried, smoked or salted fish (+18%), olive oil (+12.7%), ready-to-eat foods (+14.7%), margarine (+ 20.1%) and sweets (+9.6%).
The average price level of alcoholic beverages and tobacco products increased by 5.5% during the year. Prices of alcoholic beverages rose by 5%, mainly due to higher prices of spirits, beer and wine. During the year, the prices of tobacco products increased by 6.5%.
The average price level of housing-related goods and services increased by 34.4% during the year.
The most significant price increase during the year was for thermal energy, electricity, natural gas and solid fuel. Garbage collection, materials for housing maintenance and repair, housing rent, housing maintenance and repair services, sewerage services, water supply, as well as housing management services were more expensive.
Prices in the household equipment group rose by an average of 9.8% during the year, mainly due to the increase in prices of household furniture, household cleaning and care products, main household appliances, non-electrical kitchen utensils and items, household cleaning and household services, as well as tableware.
In the healthcare group, the average price level increased by 6.4% during the year. Dental services, medical specialist services and pharmaceutical products were more expensive.
Prices for transport-related goods and services increased by 27.5% during the year, driven by a 51.1% increase in fuel prices. Diesel fuel became more expensive by 57.6%, gasoline – by 44.9%, and auto gas – by 29.1%. The average price level increased for maintenance and repair of personal vehicles, used cars, spare parts and accessories for personal vehicles.
The average price level for restaurant and hotel services increased by 12.1%. During the year, prices for catering services rose, including restaurant and cafe services – by 10.9%, canteen services – by 9.4%, fast food services – by 9.6%. There was also a price increase for hotel services.
In the group of various goods and services, prices increased by 12.7% during the year, which was influenced by the price increase of personal hygiene products and beauty care products. Motor vehicle insurance, hairdressing and beauty salon services and financial services were more expensive.
In the other consumption groups, the most significant price increase during the year was for clothes, shoes, leisure and sports services, pet food, complex leisure services, telecommunication services and flowers.
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