The average level of consumer prices increased by 2.8 % over the year

The latest data of the Central Statistical Bureau show that in July 2021, compared to July 2020, the average level of consumer prices* increased by 2.8 %.

Compared to July 2020, in July 2021 the average level of consumer prices was mainly influenced by the rise in prices of goods and services related to transport, goods and services related to housing, food and non-alcoholic beverages, clothing and footwear, health care, alcoholic beverages and tobacco products.

Over the year, prices within the group of food and non-alcoholic beverages increased by 1.3 %. Price rise of fresh vegetables (14.7 %), potatoes (8.0 %), dried, other preserved or processed vegetables (7.2 %) had the strongest upward influence on the average price level within the group. Prices increased also for poultry (9.5 %), vegetable oil (21.3 %), flours and other cereals (8.8 %), bakery products (2.4 %), rice (12.7 %). More expensive was yoghurt (7.7 %), milk products (3.2 %) as well as butter (3,1 %). In turn, prices decreased for fresh fruit (11.1 %), dried, salted or smoked meat (1.8 %), pork (3.5 %), ice cream (6.8 %), coffee (1.5 %), chocolate (4.1 %), fruit and vegetable juices (4,4 %).

The average level of prices of alcoholic beverages and tobacco products increased by 1.4 %. Over the year, the prices of tobacco products rose by 2.9 %. Prices of spirits and beer increased. In turn, prices of wines decreased.

The average level of clothing and footwear prices rose by 2.8 %. Over the year, the average level of footwear prices increased by 9.1 %, but of garments – by 0.4 %.

The average level of prices of goods and services related to housing rose by 4.1 %. Prices of natural gas, electricity, services for the maintenance and repair of dwelling, solid fuels, rentals for housing, water supply, as well as refuse collection went up. In turn, the prices of heat energy dropped.

In the health care group, the prices increased by 2.5 %. Growth was registered in prices of dental services and prices in medical specialist practice. In turn, pharmaceutical products, mainly reimbursable medical products, were cheaper.

Over the year, prices of goods and services related to transport rose by 7.8 %, which was affected by increase in price of fuels for transport by 17.8 %. Diesel prices rose by 17.9 %, petrol by 17.1 % and auto gas by 20.3 %. Prices increased for second-hand motor cars and tyres. In turn, prices dropped for passenger transport by air.

Among other commodity groups, the most notable increase was registered in prices of catering services, furniture and furnishings, telecommunication services. In turn, fall in prices was for motor vehicle insurance and articles for personal hygiene and beauty products.

The average level of consumer prices increased by 0.4 % during the month

Compared to June 2021, in July 2021 the average level of consumer prices increased by 0.4 %. The greatest pressure on the price changes was put by the rise of prices of goods and services related to housing, goods and services related to transport, furnishings, restaurant and hotel services, as well as by the fall in prices of clothing and footwear, prices in miscellaneous goods and services group, and prices of food and non-alcoholic beverages.

Over the month, average price level of food and non-alcoholic beverages dropped by 0.1 %. Due to the seasonal factors the most significant decrease was for prices of fresh vegetables (4.6 %) and fresh fruit (3.0 %). Due to the promotions, decline was recorded in prices of dried, salted or smoked meat (1.4 %), pork (2.4 %), chocolate (4.0 %), cheese and curd (1.5 %), yoghurt (2.4 %), fruit and vegetable juices (2,6 %). In turn, due to the new crop still entering the market the most significant increase of prices was for potatoes (31.3 %). Poultry was 4.9 % more expensive.

In the group of clothing and footwear, prices decreased by 4.8 %. Due to the sales, the prices of garments dropped on average by 4.3 % and prices of footwear - by 7.5 %.

The average level of prices of goods and services related to housing increased by 2.7 %, which was mainly influenced by increase in the natural gas tariffs as of July 1. Electricity, solid fuels, as well as rentals for housing were more expensive.

In the group of furnishings the prices rose on average by 1.0 %. Household furniture and non-electric kitchen utensils and articles were more expensive.

The average price level of goods and services related to transport increased by 1.0 %. Fuels for transport became by 1.6 % more expensive, including the rise for the prices of diesel - by 1.7 %, petrol - by 1.6 %, and auto gas - by 0.8 %. Prices increased for the maintenance and repair of personal transport equipment.

The average level of restaurant and hotel service prices rose by 1.0 %. The prices for hotel services went up by 6.5 %, restaurant and café services - by 0.6 %.

In the group of miscellaneous goods and services, prices dropped on average by 0.7 %, which was mainly caused by the end of promotions for articles for personal hygiene and beauty products.

Among other commodity groups, the most notable rise was registered in prices of tobacco products, dental services and pharmaceutical products; in turn, prices for wine and pet food dropped.

Price changes by commodity group

(as per cent)

Compared to 2015, consumer prices in July 2021 were 12.3 % higher. Prices of goods rose by 10.3 %, while prices of services - by 16.8 %.

Information on consumer price changes in August 2021 will be published on 8 September.

*The annual inflation reflects consumer price changes, comparing the average price level in the comparison month with the average price level in the corresponding month of the previous year.

COVID-19 influence on consumer price index in July

The total share of Covid-19-related imputations fell to 0.4 % in July, which is 0.2 % of total household consumption expenditure.

Significant influence of Covid-19 remained in one subclass of ECOICOP (European Classification of Individual Consumption According to Purpose) - Passenger transport by sea (share of imputation 57 %). Imputations were calculated by two methods in accordance with recommendations of Eurostat for compilation of indices under the impact of Covid-19:

1. Imputation with the annual rate of change of all “reliable” price indices(In July 2021 annual consumer price index of all "reliable” indices constituted 102.8);
2. Imputation based on available prices for a particular good or service.

Indices with significant number of imputations (> 50 %) caused by Covid-19 and thus having lower quality on the Official Statistics Portal are indicated with "u."

Share of imputations by commodity group

(as per cent)

More detailed information on imputation methods used in Covid-19 circumstances, as well as action regarding compilation of indices in post-crisis circumstances is available at:

• Eurostat guidelines regarding calculation of indices during Covid-19;
• Eurostat guidelines regarding compilation of indices emerging from the lifting or lockdown of Covid-19 measures.

Media requests:
Communication Section
E-mail: media@csp.gov.lv
Phone: +371 67366989, +371 27880666

More information on data:
Nataļja Dubkova
Consumer Price Indices Section
E-mail: Natalja.Dubkova@csb.gov.lv
Phone: +371 67366644