Latvia: annual deflation in August - 0.3%

Over the past year, prices of goods have increased by 1.4 percent, while prices of services decreased by 4.4 percent.

On the other hand, compared to July 2010, the average consumer price level in August 2010 decreased by 0.7 percent. The average prices of goods decreased by 1 percent, but the average prices of services did not change.

Price drop of food, services and goods related to transport, as well as price growth of goods and services related to housing had the major impact on consumer price changes in August.

Under seasonal influence prices of vegetables on average dropped by 22.8 percent having the biggest impact on headline rate of inflation. The price drop for confectionery, meat products and fish was due to special offers.

Meanwhile prices continued to grow for dairy products and cheese – by 2.3 percent and 3.9 percent respectively. More expensive became fruit, fresh meat, fats and oils.

The major contribution to the price decrease in transport group came from fuel, which prices dropped by 1.1 percent (of which prices of petrol fell by 1.2 percent and prices of diesel - by 0.9 percent). Prices of cars and spare parts as well as bicycles also decreased.

Due to sales campaigns and seasonal discounts prices decreased for individual care goods, clothing and footwear, furniture and furnishings, household appliances, non-durable household goods and alcoholic beverages.

The major upward impact to the price increase in housing group came from rent and services related to housing as well as solid fuels.

LETA