Consumer prices in Latvia increased by 4% in May this year compared to April, but during the year – in May this year compared to May 2021 – consumer prices increased by 16.9%, according to the Central Statistical Bureau.
At the same time, the 12-month average consumer price level increased by 7.8% in May compared to the previous 12 months.
The most significant impact on price changes in May this year compared to April was the rise in prices for housing-related goods and services, which reached the sharpest month in 28 years, food and non-alcoholic beverages, transport-related goods and services, miscellaneous goods and services, and housing equipment. , restaurant and hotel services, and recreational and cultural goods and services.
Over the month, food and non-alcoholic beverage prices increased by 1.9%.
The most significant impact on the increase in the average price level in the respective group was for poultry meat (+ 15.1%). Bread was also more expensive (+ 4%), mainly due to stock closures. Prices increased for dried, salted or smoked meat (+ 3.9%), cheese and curd (+ 3.7%), confectionery (+ 3.8%), flour and other cereals (+ 6.7%), eggs (+ 7.3%), meat products (+ 5.3%) and sour cream (+ 4%).
Prices for chocolate (+ 3.5%), dried fruits and nuts (+ 4.8%) also rose at the end of the campaign. The most expensive were dried, smoked or salted fish (+ 7.1%), canned or processed fish and seafood (+ 2.7%) and frozen fish (+ 6.2%). Pasta products (+ 2.7%) and milk (+ 1%) also became more expensive.
In May, compared to April, prices for fresh vegetables (-6.5%) and fresh fruit (-3.1%) decreased. Due to stocks, coffee was cheaper (-1.5%).
The average price level of housing-related goods and services increased by 15.9% during the month, which is the fastest growth in the group during the last 28 years.
The CSB points out that from 1 January to 30 April 2022, fee reductions were applied in accordance with the Law on Measures to Reduce the Extraordinary Increase in Energy Prices for Electricity, Natural Gas and Heat. At the end of these fee reductions, from 1 May, the fee for electricity system services and mandatory procurement (OIK) and capacity components was again included in the electricity fee, as a result of which the average electricity price level increased by 59.7%.
Until now, the price ceiling for heat energy was set within the framework of the preferences, but taking into account the end of the preferences period, the price of heat energy increased by 15.4%. As of 1 May, the fee compensation for natural gas, which previously applied to users with certain consumption, was no longer valid, thus 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 group of residential equipment, prices increased on average by 2.8% during the month. During the month, due to the closing of the shares, the rise in prices was for household cleaning and care products, as well as dishes. Prices increased for home furniture, non-electric kitchen utensils and items.
Goods and services related to transport became more expensive by 2.8% during the month. Fuel prices rose by 4.8%, with diesel prices rising by 4.2%, petrol by 6.2% and car gas by 1.3%. Prices rose for tires as well as used cars. Passenger air transport was cheaper.
Prices for goods and services related to recreation and culture increased by 1.2% over the month. At the end of the campaign, toys were more expensive, as well as pet food. The average price level increased for fiction books, personal computers and flowers.
The average price level of restaurant and hotel services increased by 2.7% over the month. Hotel services became more expensive by 13.5% on average, 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 influenced by the closing of shares for personal hygiene products and beauty products.
In other consumption groups, the most significant price increase during the month was for clothing, beer, wine, tobacco products, dental services, and pharmaceutical products. In turn, prices fell for spirits.
In turn, the largest impact on the change in the average consumer price level in May 2022 compared to May 2021 was the rise in prices for housing-related goods and services, food and non-alcoholic beverages, transport-related goods and services, in the group of various goods and services, restaurant and hotel services, alcoholic beverages and tobacco products, healthcare, housing.
In the group of food and non-alcoholic beverages, prices increased by 18.2% during the year.
The most significant impact on the increase in the average price level in this group was for cheese and cottage cheese (+ 27.8%), dairy products (+ 28.8%), milk (+ 31.2%) and yoghurt (+ 20.8%). 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 meat (+ 33.6%), dried, salted or smoked meat (+ 10.6%), meat products (+ 19.2%), pork (+ 7.9%), beef (+ 17.4%). Potatoes were more expensive (+ 60.3%), fresh vegetables (+ 7.3%) and fresh fruit (+ 7.2%). Prices increased 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%), preserved 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%).
Frozen fish (+ 20.9%), dried, smoked or salted fish (+ 18%), olive oil (+ 12.7%), ready-to-eat meals (+ 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% over the year.
The most significant price increases during the year were for heat energy, electricity, natural gas and solid fuels. Garbage collection, housing maintenance and repair materials, housing rental, housing maintenance and repair services, sewerage services, water supply, as well as housing management services were more expensive.
In the group of household appliances, prices rose by an average of 9.8% during the year, mainly due to higher prices for household furniture, household cleaning and care products, basic household appliances, non-electric kitchen utensils and items, household cleaning and household services, and dishes.
In the health care group, the average price level increased by 6.4% during the year. Dental services, specialist medical services and pharmaceutical products were more expensive.
Prices for transport-related goods and services increased by 27.5% over the year, driven by a 51.1% increase in fuel prices. Diesel became more expensive by 57.6%, petrol – by 44.9%, and car gas – by 29.1%. The average price level increased for the maintenance and repair of personal transport equipment, used cars, spare parts and accessories for personal transport equipment.
The average price level for restaurant and hotel services increased by 12.1%. During the year, prices for catering services increased, including restaurant and café services – by 10.9%, canteen services – by 9.4%, fast food services – by 9.6%. Prices for hotel services also increased.
In the group of miscellaneous goods and services, prices increased by 12.7% over the year, which was influenced by the rise in prices for personal care products and beauty products. Motor insurance, hairdressing and beauty salon services and financial services were more expensive.
In the other consumer groups, the most significant price increases during the year were for clothing, footwear, leisure and sports services, pet food, complex leisure services, telecommunications services and flowers.
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