In May this year compared to April, consumer prices in Latvia increased by 4%, but during the year – in May 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 prices for housing-related goods and services, which achieved the fastest monthly increase in the last 28 years, for food and soft drinks, for transport-related goods and services, in the group of miscellaneous goods and services, for housing equipment, restaurant and hotel services, as well as goods and services related to recreation and culture.
In 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 its group. Bread was also more expensive (+4%), mainly influenced by warehouse closures. The increase in prices concerned dried, salted or smoked meats (+3.9%), cheese and cottage cheese (+3.7%), sweets (+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, the prices of chocolate (+3.5%) and nuts 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%) were more expensive. Pasta (+2.7%) and milk (+1%) have also become more expensive.
Conversely, the prices of fresh vegetables (-6.5%) and fresh fruit (-3.1%) decreased in May compared to April. Coffee was cheaper (-1.5%) under the influence of the 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 past 28 years.
CSB says that tariff concessions were applied from January 1 to April 30, 2022 under the Law on Measures to Reduce the Extreme Rise in Energy Resource Prices for Electricity, Natural Gas and Thermal Energy. After the expiry of these tariff concessions, from 1 May the fee for the electricity system services and the compulsory supply components (OMI) and capacity was included again in the electricity bill, for which the average level of energy prices electricity increased by 59.7%.
Until now, thermal energy had a maximum price set within 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 natural gas tariff compensation, which previously applied to users with a certain consumption, ceased to exist, so the average level of the price of natural gas increased by 26.3%. Solid fuel, housing rent and 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 closure of the stocks, the prices of cleaning and home care products, as well as crockery, increased. The prices of household furniture, utensils and non-electrical kitchen items have increased.
Transportation-related goods and services became more expensive by 2.8% during the month. Fuel became more expensive by 4.8%, with diesel prices rising by 4.2%, petrol by 6.2% and auto gas by 1.3%. Prices have risen for both tires and used cars. Passenger air transport was cheaper.
The prices of goods and services related to recreation and culture increased by 1.2% during the month. At the end of the promotions, toys and pet food cost more. 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 impacted by the closure of shares in personal care products and beauty products.
In other consumer groups, the most significant price increases over the month were for clothing, beer, wine, tobacco, dental services and pharmaceuticals. On the other hand, the prices of strong alcoholic beverages are decreasing.
On the other hand, the biggest 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 set of various goods and services, catering and hotel services, alcoholic beverages and tobacco, sanitary, home furnishings.
In the food and non-alcoholic beverage group, prices increased by 18.2% for the year.
Cheese and cottage cheese (+27.8%), dairy (+28.8%), milk (+31.2%) and yoghurt (+20.8%) had the most significant impact on the average level increase prices in that group. The prices of bread (+17.1%), flour and other cereals (+52.7%), sweets (+13.5%), pasta (+38.8%), rice (+30.5%) increased %)) and breakfast cereals (+10.4%).
Poultry prices (+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%) are more expensive. The increase in prices involved coffee (+16.5%), ice cream (+22.4%), vegetable oil (+35.0%), butter (+23.2%), fresh or refrigerated 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%), 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 meals (+14.7% ), margarine (+20.1% ) and desserts (+9.6%).
The average price level of alcoholic beverages and tobacco increased by 5.5% during the year. 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% during the year.
The most significant price increase of the year concerned thermal energy, electricity, natural gas and solid fuels. Garbage collection, housing maintenance and repair materials, housing rent, housing maintenance and repair services, sewage services, water supply, as well as 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, household cleaning and care products, main household appliances, utensils and non-electrical kitchenware, 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, specialist medical services and pharmaceuticals were found to be more expensive.
Prices of transportation-related goods and services rose 27.5% for the year, driven by a 51.1% increase in fuel prices. Diesel became more expensive by 57.6%, petrol by 44.9% and automotive gas by 29.1%. The average price level increased for the maintenance and repair of personal vehicles, used cars, spare parts and accessories for personal vehicles.
The average price level of restaurant and hotel services increased by 12.1%. During the year, the prices of catering services increased, including restaurant and bar 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 miscellaneous goods and services group, prices increased by 12.7% during the year, which was influenced by the price increases of personal hygiene products and beauty care products. Car insurance, hair 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, footwear, leisure and sports services, pet food, complex leisure services, telecommunications services and flowers.
