producer's prices

In March 2013, producer prices did not rise substantially month-on-month (+0.1%) and continued to even drop for the production sold domestically (by 0.4%), because for several months, energy production prices remained their main reducing component. Since the drop in energy production prices exceeded the one observed in March a year ago, the year-on-year rise in production sold domestically dropped to 0.8% affecting the level of consumer prices ever less.

In September 2012, the producer prices in Latvia remained unchanged because the main cost components – energy costs and the global prices of several raw materials (food, metals) did not rise substantially.

The monthly upward changes in producer prices were primarily determined by the appreciation of the production costs of products oriented toward the domestic market, e.g., wood pulp and rubber products. In contrast to previous months, energy production affected the producer price index in the opposite direction, i.e. downward.

Industrial producer prices dropped 0.1% in December, their annual rise dropping to 6.5%, the lowest figure since October 2010.

In November, producer prices dropped 0.5% month-on-month, slightly more on account of exported production.

Stabilisation and even a drop in global prices has notably affected the price and cost trends in Latvia. In September, for the first time in the last ten months, producer prices posted an overall month-on-month decrease of 0.4%. Prices mostly fell on account of shrinking producer prices of exported goods (0.9%); prices of goods sold on the domestic market edged down by 0.1% over the month. The annual rate of increase in producer prices continued on a downward trend, down to 6.8% in September.

In August, producer prices continued to rise yet at a continued slower pace. The producer price index was 7.8% higher than a year ago. A month-on-month rise of 0.4% was accounted for by appreciation in energy production (1.5%). Energy producer price rises were determined by a rise in the retail price of natural gas. Under its impact, the producer price level of goods sold in the domestic market grew 0.8% month-on-month. The prices of exported production dropped 0.1% month-on-month, reflecting stabilization in global prices. It became cheaper to produce exported food wood pulp products.

Producer prices continued to rise in July; they were 8.0% higher than a year ago. The 0.7% month-on-month increase was primarily on account of the appreciation in metal production (+6.4%) determined by the global rise in metal prices. In other industries prices have risen either more moderately or even dropped.  

Whereas globally commodity prices are beginning to show signs of stabilizing, in Latvia producer prices still continued to rise in April. The prices rose 2.3% month-on-month and 8.6% year-on-year. The price rise was determined by the appreciation of goods produced for the domestic market, with prices rising in this group by 4.2% over a month. About 90% of this rise was accounted for by a rise in electrical power tariffs, which was accompanied by producer price rises in manufacturing.

Producer prices continued to rise in February; gaining 0.7% month-on-month and 8.6% year-on-year. The rise continued to result from the rapidly rising global prices. Within one month, producer prices have risen 1.6% for export products, with food, wood pulp and metal producer prices climbing. The prices of goods sold in the domestic market remained unchanged month-on-month, the price rise in manufacturing, particularly in food production, was compensated by a drop in energy production prices. 

Global price changes continued to determine producer price dynamics in January as well. As the producer prices of both exported and domestically sold production grew, the producer price index (PPI) rose 1.3% over a month and 8.4% over a year. The greatest effect on price rises has had the price hikes in the production of food products, which reached 2.3% per month, having an equally significant effect on both exported production and that sold in the domestic market.