In June 2020, compared to June 2019, the average consumer price level decreased by 0.7%, but compared to May 2020, it increased by 0.2%, according to the latest data of the Central Statistical Bureau (CSB).
With life returning to normal in Latvia, consumer prices rose in June for goods and services related to transport, leisure and culture. Diesel fuel became 8.9%, petrol – 10.6%, and car gas – 4.3% more expensive. (True, compared to June last year, that is, on an annual basis, fuel is still 16% cheaper).
As a result of the easing of restrictions, a number of leisure and sports services were again available in June, with prices rising by 1.3%. Pet food, fiction books, glasses and contact lenses also became more expensive.
At the same time, food and non-alcoholic beverage prices fell by 1.4%. As the waste collection procedure in Riga changed, the average price level for waste collection services decreased by 5.4%. Heat became a few percent cheaper. Prices for hotel services also continued to fall on a monthly basis.
During the year, fresh fruit became more expensive (+ 24.6%), including apples, pears, oranges and lemons. Prices also increased for dried, salted or smoked meat (+ 8.4%), meat products (+ 6.8%) and pork (+ 1.5%). In the health care group, the average price level increased by 2.6%, which was mainly influenced by the rise in prices for dental, general medical practice and medical services. It is interesting that the average price level of restaurant and hotel services has also increased by 2.5% during the year. The increase in prices was mainly determined by catering services, including an average price increase of 2.7% for restaurant and café services and 4.6% for canteen services. This means that without the crisis, these services would probably have become more expensive the most.
Prices have risen by 7% for basic necessities
Concerned that the pandemic caused by Covid-19 could lead to higher prices for basic necessities, disinfectants and face masks, the Consumer Protection Center (CRPC) has been monitoring goods in these three product groups since March this year to determine their availability and prices at points of sale, including online stores.
Summarizing the price information from March 9 to June 5, the CRPC concluded that prices did not change in 45% of cases, shares applied to goods in 43% of cases, the price of goods decreased in 4% of cases, but the price increased in 7% of cases.
Prices for buckwheat and rice of a particular producer have risen most often due to the increase in producer prices for these products even before the emergency. In general, basic necessities are available, and if something is not on offer, then it is available to buy similar goods from other manufacturers, the CRPC concluded.
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Due to the high demand for disinfectants, the CRPC also started monitoring these products on April 7, recording prices at a total of 31 outlets, covering the largest grocery stores, major construction stores, as well as gas stations and pharmacy chains. A total of 144 commercially available disinfectants were detected at points of sale, of which only six disinfectants have risen in price.
Despite the increase in prices in some cases, in general during the monitoring period there is a significant increase in the supply of disinfectants and a decrease in the average price per liter – on average from 30.98 euros per liter to 22.38 euros per liter or 28% decrease from the initial price, CRPC concludes. If at the beginning of monitoring disinfectants were not available in many places, then their range grew every week, especially disinfectants produced in Latvia.
Half of the respirators – inadequate
Also, since 5 May this year, CRPC has monitored the availability and price of face masks in 230 outlets (59% of outlets and 41% of online stores). A total of 547 face masks were monitored, of which 32% were respirators, 53% hygiene masks, 11% medical masks and 4% face shields.
During the monitoring, it was found that all types of face masks are commercially available, but the availability of medical face masks was relatively lower. The offer of hygienic masks was especially wide, including various fabric masks made by home manufacturers.
After monitoring by CRPC, 49% of tested respirators and 22% of hygienic masks were found to be non-compliant. On the other hand, the prices for face masks have not increased during this period, on the contrary – the prices for medical masks and hygiene masks have decreased compared to the beginning of monitoring.
The CRPC concluded that the average price of respirators at the beginning of the monitoring was 5.85 euros per piece, but at the end of May it had dropped to 5.28 euros per piece. There is also a significant price reduction for hygiene masks – from 2.75 euros per piece to 1.97 euros per piece – and for medical masks – from 1.20 euros per piece to 0.74 euros per piece.
The Independent has already written that the mandatory use of face masks in public transport was introduced on 12 May. It was only revoked on 1 July.
Price collection during the crisis
The CSB informs that during the Covid-19 pandemic, the consumer price survey is conducted in Riga and 10 other Latvian cities from the 4th to the 20th of each month. Price registration is performed by specially trained CSB employees, visiting the sample registration sites in person, collecting prices on the Internet or obtaining data in telephone interviews. Due to Covid-19, the share of prices collected remotely (using Internet resources and telephone interviews) has increased. In total, about 3% of prices in June were collected using one of the alternative options (the proportion represents only those prices that would have been collected in person in the standard situation).
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