The latest data published by the Central Statistical Bureau (CSB) March 8 show that in February 2023, compared to February 2022, the average level of consumer prices increased by 20.3 %.
Euro area annual inflation is expected to be 8.5% in February 2023, so Latvia continues to run at more than double that rate. In fact, the CSB figure is higher than the estimated 20.1% that was expected by Eurostat and means Latvia has the eurozone's highest inflation, followed by Estonia on 17.8% (estimated) and Lithuania on 17.2% (estimated).
Over the year, prices within the group of food and non-alcoholic beverages increased by 25.3 %, while the average level of prices of goods and services related to housing rose by an even more eye-watering 46.6 %. Over the year, the most significant rise in the prices was for heat energy (66.4 %), electricity (90.2 %), solid fuels (70.4 %) and natural gas (79.5 %).
The average level of health care prices grew by 10.1 %. Over the year, prices of pharmaceutical products, dental services and prices in medical specialist practice also went up.
Compared to January 2023, in February 2023 the average level of consumer prices increased by 0.6 %. Food and non-alcoholic beverages (0.3 percentage points), alcoholic beverages and tobacco products (0.2 percentage points), goods and services related to recreation and culture (0.1 percentage point) contributed the most to the price level changes.
Price changes by commodity group (as per cent)
|
Groups |
Price changes in February 2023, compared to: |
||
|
February 2022 |
December |
January |
|
|
Total |
20.3 |
1.1 |
0.6 |
|
food |
25.3 |
2.5 |
1.2 |
|
alcohol, tobacco |
7.8 |
3.5 |
2.2 |
|
clothing, footwear |
5.8 |
-4.4 |
0.2 |
|
housing |
46.6 |
-0.8 |
-0.1 |
|
furnishings |
11.3 |
1.6 |
-0.9 |
|
health |
10.1 |
2.5 |
0.7 |
|
transport |
9.7 |
0.6 |
0.3 |
|
communication |
6.8 |
0.5 |
0.1 |
|
recreation, culture |
11.5 |
2.8 |
1.3 |
|
education |
12.3 |
0.3 |
0.3 |
|
restaurants, hotels |
18.2 |
1.0 |
0.7 |
|
miscellaneous |
17.2 |
2.1 |
-0.9 |
Compared to the baseline year of 2015, in February 2023 consumer prices were 42.8 % higher. Prices of goods have increased by 45.3 % and prices of services by 34.0 %.
Commenting on the data, the Finance Ministry said "The high level of annual inflation, as in previous months, was determined by the rapidly rising prices of electricity, gas, thermal energy and other fuels, which in general increased by 72.8% compared to February of last year and accounted for more than one third of the total inflation. Almost a third of the overall inflation was caused by the 23.7% increase in the prices of food and non-alcoholic beverages, while the prices of motor fuel, which also had a significant impact on the overall price increase for a large part of last year, have shown an increase of only 12.0%."
"The decrease in inflation in the coming months will also be ensured by fuel prices, which are currently at a lower level than a year ago," predicted the Ministry.
