Latvian consumer prices rise 0.1 pct in August

Latvian consumer prices decreased 0.5 percent in August compared to July, but the annual inflation compared to August 2014 was 0.1 percent, the national statistics office reported.

Latvia's average 12-month inflation rate was 0.4 percent in August this year.

On the month, prices fell 0.7 percent for goods, and prices for services declined 0.1 percent. Compared to August 2014, prices decreased 0.8 percent for goods, but rose 2.4 percent for services.

The statistics office said the greatest pressure on the consumer price changes in August 2015 compared to the previous month was from a drop in prices of transport goods and services, food and non-alcoholic beverages, individual care goods and services, goods and services related to housing, as well as by growth in prices of alcoholic beverages and tobacco.

In transport, the average price level declined by 2.5 percent, which was mainly affected by drop of 5.4 percent in fuel prices. Passenger transport by air and sea became cheaper, whereas second-hand cars became more expensive.

Prices of food decreased by 1.3 percent. Affected by seasonal factors, prices of vegetables dropped by 17.2 percent, mainly of tomatoes, carrots, fresh cabbages, sweet peppers and cucumbers. Milk and dairy products also became cheaper. However, increase was recorded in prices of meat and meat products.

Prices of individual care goods and services decreased by 1.2 percent.

Heating prices decreased on average by 1.2 percent. Prices of materials for housing maintenance and repair dropped. On the other hand, growth was observed in prices of services for housing maintenance and repair.

The average price level of alcoholic beverages grew by 3.6 percent, which was affected by increase of excise duty rate as of August 1, 2015. Growth was mainly recorded in prices of beer, spirits and wine. Prices of tobacco declined by 0.1 percent. Endit