In December, level of construction costs rose by 0.5 %
Data of the Central Statistical Bureau show that, compared to November, in December 2021, the level of construction costs in Latvia increased by 0.5 %. Labour remuneration of workers rose by 1.0 %, maintenance and operational costs of machinery and equipment – by 0.7 %, and prices of building materials increased by 0.2 %.
In December, the average level of construction costs was mostly affected by an increase in remuneration for electricians and assemblers.
Compared to December 2020, in December 2021, the level of construction costs rose by 12.0 %. Prices of building materials rose by 17.8 %, maintenance and operational costs of machinery and equipment – by 7.3 % and labour remuneration of workers increased by 4.7 %.
Compared to the 3rd quarter, in the 4th quarter of 2021 the overall level of construction costs increased by 2.7 %. Prices of building materials rose by 4.0 %, maintenance and operational costs of machinery and equipment – by 2.0 % and labour remuneration of workers increased by 0.8 %.
In the 4th quarter of 2021, compared to the 4th quarter of 2020, the overall level of construction costs increased by 11.7 %. Prices of building materials rose by 17.5 %, maintenance and operational costs of machinery and equipment – by 6.9 % and labour remuneration of workers increased by 4.5 %.
The average 12-month level of construction costs of 2021 increased by 6.7 % in comparison to the average 12-month level of 2020. Prices of building materials rose by 9.1 %, maintenance and operational costs of machinery and equipment as well as labour remuneration of workers rose by 4.1 %.
Information on changes of construction costs in January 2022 will be published on 25 February.
Methodological explanations
In 2021, the data on prices of construction resources were provided by approximately 200 construction enterprises and more than 50 trade enterprises. When calculating the Construction Cost Index, the prices of building materials submitted by enterprises for the calculation of producer price indices in industry and import price index are also used. Additionally, registered consumer prices of building materials are used in calculations.
The sample includes construction enterprises with the highest value of own account construction works in 2020. The share of enterprises with the value of own account construction work exceeding EUR 1 million per year accounted for 90.3 %, in 34 % of which the value of own account construction work exceeded EUR 5 million per year. The criterion for the sample of trade enterprises is their turnover and specialisation.
Report on prices of construction resources for December were submitted by 95.6 % of enterprises; the volume and quality of the data submitted does not differ significantly from previous periods. Overall index of construction costs in December corresponds to statistical basic principles and general quality criteria.
More information on construction cost indices in Latvia is available on the Official Statistics Portal, section "Metadata".
Media requests:
Communication Section
E-mail: media@csp.gov.lv
Phone: +371 27880666
More information on data:
Ļubova Ņemsadze
Producer Price Indices Section
E-mail: Lubova.Nemsadze@csp.gov.lv
Phone: +371 67366783
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