energy prices

In October the average level of consumer prices in Latvia remained unchanged, with the prices of communication services, fuel, alcoholic beverages and seasonal tourism services dropping and those of foodstuffs and new season’s wearing apparel and footwear rising. Annual inflation reached its minimum level since autumn 2010, dropping to  1.6%. This indicator was smaller than expected as a result of competition among communication services and sales campaigns of sellers of alcoholic beverages as well as because of a greater drop in fuel prices.

In September 2012, with the consumer price level rising by 0.5%, the annual inflation remained low at 1.8%.

With consumer prices down by 0.3% month-on-month, the annual inflation in August remained low (at the July level of 1.7%). The 12-month average inflation dropped to 3.1%.

In April 2012, the annual inflation continued to drop, with its drop within a month, 0.5pp to 2.8%, reflecting the so-called base effect similar to last-year's rise in electrical power tariffs in April of last year and confirming the dependence of a small economy on the fluctuations in global prices.  

The 0.6% month-on-month rise in consumer prices in March 2012 was primarily the result of seasonal factors, oil prices and, in part, the clamour in the food market.

In February 2012 the monthly dynamic of consumer prices was primarily impacted by the rise in oil prices because of which fuel prices continued to climb as well as the end of seasonal sales. Here we are referring to wearing apparel, footwear, household furnishings: these groups still saw price drops. The monthly inflation was thus 0.1%, which is a much lower rise than in January when the prices of natural gas and thermal energy were raised. The annual inflation in February dropped to 3.4%.

In January 2012 the annual inflation dropped to 3.6%, yet consumer prices rose 0.8% month-on-month.

The average consumer price level in December of 2011 remained unchanged, whereas the annual inflation, i.e. consumer price levels compared to December 2010 dropped to 4.0%. The main contributor was the diminished impact of the prices of fuel and unprocessed foods. The average rise in consumer prices by 4.4% observed in 2011 was mostly related to the impact of indirect taxes as well as global energy resource and food prices.

The annual inflation dropped to 4.2% in November, with the average consumer price level remaining unchanged month-on-month.

Monthly price rises were observed for tobacco products and alcoholic beverages as the discount sales drew to a close as well as for some food products and fuel as a result of developments in the global market. Inter-seasonal discounts in retail for wearing apparel and footwear had a limiting impact on the monthly inflation – the prices for these goods dropped 1.3% month-on-month.