Producer prices are stable and exert no upward pressure on consumer prices
Producer price dynamic is exerting no upward pressure on consumer prices. In August 2013, the prices of manufacturing products sold on the domestic market were 1.8% higher than a year ago. The slightly higher total rise in the prices of manufacturing products (by 1.9%) was determined by the rising prices of export goods (by 2.0%).
At the present time, nothing points to endangered price stability in the coming months:
- In August, cereal price index dropped to a three-year minimum in real terms. The UN Food and Agriculture Organization predicted a record high harvest already in July, but in September the evaluation of this year's harvest was increased, particularly in view of the higher than estimated harvests of maize in Argentina, the European Union and Ukraine. That more than compensates the impact of the increase in dairy product prices on the food prices overall;
- The rise in oil prices (at the end of August and beginning of September) because of the unrest in Syria turned out to be short lived and right now oil prices are close to the average of the last 12 months;
- The prices of metals and wood pulp likewise do not exceed the average level of the last 12 months;
- The price expectations of Latvian manufacturers (data of European Commission business tendency survey) are moderate and stable and overall match the current price dynamic.