Latvia’s PPI down to 1.2% y/y in August.

By bne IntelliNews September 22, 2013

Latvia’s Producer’s Price Index was 1.2% y/y and 0.2% m/m in August, data by Central Statistical Bureau shows. Producer prices growth for the secnd month in a row decelerated as compared to 2.1%-2.2% y/y seen in March-June.

In 2012, PPI increased by 3.7% vs. 7.7% increase of producer prices in 2011. Out of that, in 2012 prices of products sold domestically increased by 5.2% and of exported goods by 1.8%.

Manufacturing prices’ growth that had 72.4% weight in August’s PPI was 1.9% y/y, prices of the utilities with 21.4% weight slipped by 0.3%, and mining prices with 2.1% weight gained 3.6% y/y. Producer prices growth rates remained stable in all segments, with a slight reduction in manufacturing and utilities. The increase of production prices of food products also remained stable at 3% growth y/y.

Prices of domestically sold produce went up by 0.4% y/y and prices of exported products went up by 2% y/y in August.

The Bank of Latvia economist, Olegs Krasnoperovs on makroekonoimika.lv commented that producer prices are not putting any pressure on consumer prices. Global, European, and domestic trends do not indicate any threat to price stability in the coming months.

The CB sees consumer price inflation averaging to 0.7% y/y this year vs. previous forecast of 1% (already cut once from initial 2% expectation). Cutting inflation forecast to 0.7% y/y in 2013 was attributed to low inflationary expectations for H2/13. Wage growth is in line with the productivity developments, the central bank believes. Moderate development in crediting does not indicate consumption boom that could endanger price stability.

Related Articles

Latvia issues permits to new gas infrastructure holding

The Latvian Public Utilities Commission (SPRK) announced on January 5 that it has issued licences to Conexus Baltic Grid for the transmission and storage of gas. Conexus Baltic Grid will control ... more

Latvijas Gaze agrees to set up spin-off company to operate gas grid and storage

A shareholders' meeting at Latvijas Gaze (LG) decided on December 22 to set up a company that will be used to spin off the country's gas pipelines and storage facilities. The creation of Conexus ... more

Latvia fines Swedbank for failings in anti money laundering measures

The Latvian branch of the Swedish banking group Swedbank said on November 23 it will implement measures to curb money laundering. The pledge follows an audit and a fine of €1.36mn from the ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss