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 2021 – consumer prices increased by 16.9% , according to data from the Central Statistical Office.
At the same time, the 12-month average level of consumer prices, compared with 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 the prices of housing-related goods and services, which achieved the fastest monthly increase in 28 years, for food and non-alcoholic beverages, for transportation-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 relating to recreation and culture.
During the month, the prices of food and soft drinks increased by 1.9%.
Poultry meat (+ 15.1%) had the most significant effect on the increase in the average price level in the reference group. Bread is also more expensive (+ 4%), mainly influenced by the closing of stocks. The price increase concerns dried, salted or smoked meats (+ 3.9%), cheeses and ricotta (+ 3.7%), sweets (+ 3.8%), flours and other cereals ( + 6.7%), eggs (+ 7.3%), meat products (+ 5.3%), as well as sour cream (+ 4%).
At the end of the promotions, the prices of chocolate (+ 3.5%), dried fruit and dried fruit (+ 4.8%) also increased. Dried, smoked or salted fish (+ 7.1%), canned or processed fish and fish products (+ 2.7%) and frozen fish (+ 6.2%) are more expensive. Pasta (+ 2.7%) and milk (+ 1%) have also become more expensive.
In May, compared to April, the prices of fresh vegetables (-6.5%) and fresh fruit (-3.1%) decreased. Coffee was cheaper (-1.5%) under the influence of equities.
The average price level of housing-related goods and services increased by 15.9% during the month, which is the fastest rise recorded in the group during the month for the past 28 years.
CSB states that from January 1 to April 30, 2022, tariff concessions were applied in accordance with the law on measures to reduce the extreme increase in the prices of energy resources for electricity, natural gas and thermal energy. After the expiry of these concessions, from 1 May the consideration for the electricity system services and compulsory tenders (OMI) and the capacity components was again included in the bill, for which the average level of electricity prices is increased by 59.7%.
Up to now, thermal energy had a price ceiling set as part of the incentives, but taking into account the end of the incentive period, thermal energy has become more expensive by 15.4%. From 1 May the tariff compensation for natural gas, which previously was applied to users with a certain consumption, was no longer valid, therefore the average price level of natural gas increased by 26.3%. Solid fuels, housing rentals, and bottled liquefied gas 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 close of the shares, the prices of cleaning and care products, as well as dishes, increased. Prices have gone up for home furniture, kitchen utensils and non-electrical items.
Transportation-related goods and services became 2.8% more expensive during the month. Fuel became 4.8% more expensive, with prices for diesel fuel up 4.2%, gasoline by 6.2% and automotive gas by 1.3%. Prices have gone up for tires and used cars. Passenger air transport was cheaper.
The prices of goods and services related to leisure and culture increased by 1.2% in 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 have become more expensive on average by 13.5%, restaurant and bar services – by 1.5% and canteen services – by 2.8%.
In the miscellaneous goods and services group, prices increased by 2.3%, which was affected by the close of shares in personal care and beauty products.
In the other consumer groups, the most significant price increases in the month were for clothing, beer, wine, tobacco, dental services and pharmaceuticals. On the other hand, the prices of strong alcoholic beverages have fallen.
On the other hand, the greatest impact on changes in the average level of consumer prices in May 2022, compared to May 2021, was the increase in the prices of goods and services related to housing, food and soft drinks, goods and services. relating to transport, in the grouping of various goods and services, restaurants and hotel services, alcoholic beverages and tobacco, health care, home furnishings.
In the food and non-alcoholic drinks group, prices increased by 18.2% over the year.
Cheese and ricotta (+ 27.8%), dairy products (+ 28.8%), milk (+ 31.2%) and yogurt (+ 20.8%) had the most significant impact on the increase in the average level of prices in the group mentioned. The prices of bread (+ 17.1%), flour and other cereals (+ 52.7%), pastry (+ 13.5%), pasta (+ 38.8%), rice (+ 30.5%) and breakfast cereals (+ 10.4%).
During the year, the prices of 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 fruit (+ 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%), jams and honey (+ 14.9%), juices fruit and vegetables (+ 9.4%), sauces and condiments (+ 18.3%), salt and spices (+ 20.2%).
In addition, the price of frozen fish (+ 20.9%), dried, smoked or salted fish (+ 18%), olive oil (+ 12.7%), ready meals (+14.7 %), margarine (+ 20.1%) and sweets (+ 9.6%).
The average price level of alcoholic beverages and tobacco products increased by 5.5% over the year. The prices of alcoholic beverages increased by 5%, mainly due to the increase in the 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 increase of the year was for thermal energy, electricity, natural gas and solid fuels. Waste collection, housing maintenance and repair materials, housing rental, housing maintenance and repair services, sewage services, water supply and housing management services were more expensive.
Prices in the household appliances group increased by an average of 9.8% over the year, mainly due to the increase in the prices of household furniture, cleaning and home care products, major household appliances, non-electric 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% over the year. Dental services, specialist medical services, and pharmaceuticals were more expensive.
Prices of 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 car gas by 29.1%. The average price level increased for the maintenance and repair of motor vehicles, used cars, spare parts and accessories for motor vehicles.
The average price level of restaurant and hotel services increased by 12.1%. During the year, the prices of catering services increased, including catering and cafeteria services – by 10.9%, canteen services – by 9.4%, fast food services – by 9.6% . There has also been a rise in prices for hotel services.
In the group of various goods and services, prices increased during the year by 12.7%, influenced by the increase in the prices of personal hygiene products and beauty care products. Car insurance, hairdressing and beauty salon services and financial services were more expensive.
In the other consumer groups, the most significant price increases of the year were for clothing, shoes, leisure and sports services, pet food, complex leisure services, telecommunication services and flowers.
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