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Inflation is rising again in Latvia: should we expect a sharp rise in prices?

В Латвии снова растет инфляция: стоит ли ждать резкого скачка цен?

In June, annual inflation in Latvia amounted to 1.4%. It is noteworthy that in May this figure was 0.1%, according to data from the Central Statistical Office (CSO). Experts note: the dynamics of inflation is a motley mosaic of multidirectional trends, often opposite. At the same time, it looks like this year’s lowest inflation rate has been left behind and prices are on an upward trend again. If we talk about food products, some goods have risen in price, noticeably, while others have fallen in price. The most significant contribution to the increase in the average price level in this group was made by potatoes (+29%), confectionery (+6.9%) and olive oil (+37.2%). Chocolate (+9%), fruit and vegetable juices (+12.3%), sweets (+17.1%) and coffee (+3%) became more expensive. Prices also increased for dried, salted or smoked meat (+1.7%), butter (+6.1%), canned or processed fish and seafood (+6.8%), soft drinks (+8.8% ), fresh or chilled fish (+8.5%), fresh fruit (+1.5%) and pork (+1.6%). But prices for flour and other cereals (-12%), cheese and cottage cheese (-3.3%), bread (-1.9%), fresh vegetables (-1.7%), eggs (-6.2%) fell in price. , dairy products (-3.6%), sugar (-11.7%) and vegetable oil (-5.9%). Prices for cigarettes and alcohol increased by 6.8% over the year. Strong alcohol, beer and wine have become more expensive. The average price level for housing-related goods and services decreased by 8.4% compared to the previous year. The prices for heating (-16.8%) and electricity (-19.4%) decreased most significantly over the year. Solid fuels (-11.1%) and natural gas (-7.6%) fell in price. However, prices for housing management services (+7.6%), garbage collection (+13.4%), rent (+5.8%), water supply (+6.3%), maintenance and repair services ( +5.5%) and sewerage services (+4.2%). In the healthcare group, the average price level over the year increased by 5.3%. Medicines and the services of medical specialists have become more expensive, and prices at dentists, laboratories and x-ray centers have increased. Prices for goods and services related to transport increased by 5.1%, which was driven by a 6.8% increase in fuel prices. Diesel fuel rose in price by 10.5%, gasoline by 4.3%, and the price of automobile gas decreased by 3.4%. Also over the year, prices for vehicle maintenance and repairs have increased. But prices for used cars have dropped. Here's how banking analysts comment on the new data.

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