Inflation in Latvia reaches 16.9% in May – bnn-news.com

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Compared to May 2021, the average level of consumer prices increased by 16.9 % in May 2022.

Compared to May 2021, the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to housing, food and non-alcoholic beverages, goods and services related to transport, within the miscellaneous goods and services group, restaurant and hotel services, alcoholic beverages and tobacco products, health care, furnishings in May 2022, according to the latest data of the Central Statistical Bureau.

Over the year, prices within the group of food and non-alcoholic beverages increased by 18.2%. Price rise for cheese and curd (27.8%), milk products (28.8%), milk (31.2%) and yoghurt (20.8%) had the strongest upward influence on the average price level within the group. Upturn was recorded in prices of bread (17.1%), flours and other cereals (52.7%), bakery products (13.5%), pasta products (38.8%), rice (30.5%) and breakfast cereals (10.4%).

Increase over the year was observed in prices of poultry (33.6%), dried, salted or smoked meat (10.6%), meat preparations (19.2%), pork (7.9%), beef (17.4%).

Growth was recorded in prices of potatoes (60.3%), fresh vegetables (7.3%) and fresh fruit (7.2%). Prices rose 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-based preparations (15.8%), jams 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 (18.0%), olive oil (12.7%), ready-made meals (14.7%), margarine (20.1%) and sweets (9.6%) also became more expensive.

The average level of alcoholic beverage and tobacco product prices rose by 5.5%. As prices of spirits, beer and wine went up alcoholic beverages became more expensive (5.0%). Over the year, prices of tobacco products increased by 6.5%.

Average level of prices of goods and services related to housing went up by 34.4%. Over the year, the most significant rise in the prices was for heat energy, electricity, natural gas and solid fuels. Increase was registered in prices of refuse collection, materials for the maintenance and repair of the dwelling, rentals for housing, services for the maintenance and repair of the dwelling, sewage collection, water supply as well as maintenance charges in multi-occupied buildings.

Within the furnishings group prices rose on average by 9.8%, mainly due to the more expensive household furniture, household cleaning and maintenance products, major household appliances, non-electric kitchen utensils and articles, domestic and household services as well as dishes.

The average level of health care prices grew by 6.4%. Growth was registered in prices of dental services, prices in medical specialist practice and pharmaceutical products.

Prices of goods and services related to transport increased by 27.5%, which was determined by the rise in prices of fuels for transport by 51.1%. Prices of diesel went up by 57.6%, of petrol – by 44.9%, but of auto gas – by 29.1%. The average price level increased for maintenance and repair of personal transport equipment, second-hand motor cars, spare parts and accessories for personal transport equipment.

The average level of restaurant and hotel service prices went up by 12.1%. Increase over the year was observed in prices of catering services, of which prices of restaurant and café services rose by 10.9%, of canteen services – by 9.4%, of fast food services – by 9.6%. Prices of hotel services also went up.

Within the miscellaneous goods and services group, prices increased by 12.7%, which was affected by the rise in prices of articles for personal hygiene and beauty products. Motor vehicle insurance, hairdressing and personal grooming establishment services and financial services were more expensive as well.

Among other commodity groups, the most notable rise was registered in prices of garments, footwear, recreational and sporting services, pet food, package holidays, telecommunication services and flowers.

Compared to April 2022, the average level of consumer prices increased by 4.0% in May 2022. The greatest pressure on the price changes was put by the rise in prices of goods and services related to housing, food and non-alcoholic beverages, goods and services related to transport, within the miscellaneous goods and services group, furnishings, restaurant and hotel services, as well as in prices of goods and services related to recreation and culture.

Over the month, prices of food and non-alcoholic beverages grew by 1.9%. Price rise for poultry (15.1%) had the strongest upward influence on the average price level within the group. Growth was registered in prices of bread (4.0%), which was mainly affected by the end of promotions. Prices went up for dried, salted or smoked meat (3.9%), cheese and curd (3.7%), bakery products (3.8%), flours and other cereals (6.7%), eggs (7.3%), meat preparations (5.3%) as well as sour cream (4.0%). Due to the end of special offers, increase was recorded in prices of chocolate (3.5%), dried fruit and nuts (4.8%). More expensive was dried, smoked or salted fish (7.1%), preserved or processed fish and seafood-based preparations (2.7%) and frozen fish (6.2%). Prices went up for pasta products (2.7%) and milk (1.0%). In turn, prices decreased for fresh vegetables (6.5%) and fresh fruit (3.1%). Price drop for coffee (1.5%) was caused by discounts.

Average level of prices of goods and services related to housing rose by 15.9%, which is the largest increase in the group during the month over the past 28 years. For the period from 1 January to 30 April 2022 compensation schemes were applied in accordance with the Law on measures to reduce the extraordinary rise in energy prices for electricity, natural gas and heat energy. With the end of reductions, the fee for electricity system services and mandatory procurement and capacity components (MPC) was again included in the electricity fee as of 1 May, as a result the average electricity price level increased by 59.7%. The price cap for heat energy that was set for compensation period was lifted and the price of heat energy increased by 15.4%. As of 1 May, the fee compensation for natural gas, which previously referred to users with a certain consumption volumes, was no longer in force, and the average price level of natural gas increased by 26.3%. Prices went up for solid fuels, rentals for housing as well as liquefied gas in cylinders.

Within the furnishings group prices rose on average by 2.8%. During the month, due to the end of special offers, upturn was recorded in prices of household cleaning and maintenance products as well as dishes. Prices increased for household furniture, non-electric kitchen utensils and articles.

Goods and services related to transport became more expensive by 2.8%. Prices of fuels went up by 4.8%, as prices of diesel rose by 4.2%, of petrol by – 6.2% and of auto gas – by 1.3%. Increase was observed in prices of tires as well as second-hand motor cars. Prices of passenger transport by air went down.

Prices of goods and services related to recreation and culture rose by 1.2%. Due to the end of sales, growth was recorded in prices of toys as well as pet food. The average price level for fiction books, personal computers and flowers increased.

The average level of restaurant and hotel service prices went up by 2.7%. Prices of hotel services on average rose by 13.5%, of restaurant and café services – by 1.5%, of canteen services – by 2.8%.

Within the miscellaneous goods and services group, prices increased by 2.3%, which was affected by the end of sales for articles for personal hygiene and beauty products.

Among other commodity groups, the most notable rise was registered in prices of garments, beer, wine, tobacco products, dental services, pharmaceutical products. In turn, prices of spirits went down.

Compared to 2015, in May 2022 consumer prices were 30.3% higher. Prices of goods increased by 32.1% and prices of services by 23.8%.

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