Compared to April, the level of producer prices in Latvian industry grew by 0.4% in May. The prices of products sold on the domestic market increased by 0.3%, whereas the prices of exported products grew by 0.5%. The prices of products exported to euro area countries grew by 0.8% and of products exported to non-euro area countries – by 0.4%.
During the month, changes in producer prices were mainly affected by a price increase in the manufacture of wood and of products of wood and cork, except furniture, as well as in the manufacture of food products. A lowering effect on the prices could be observed in the manufacture of chemicals and chemical products, as well as in the manufacture of beverages, according to data from the Central Statistical Bureau of Latvia.
Compared to May 2016, the average level of producer prices in Latvian industry increased by 2.9% in May. The prices of products sold on the domestic market have increased by 2.8%, while those of exported products have grown by 2.9%. The prices of products exported to euro area countries have grown by 3.2% and of products exported to non-euro area countries – by 2.7%.
The most significant impact was caused by a price increase in the manufacture of food products, manufacture of wood and of products of wood and cork, except furniture, as well as in waste collection, treatment and disposal activities; materials recovery. The greatest lowering effect was experienced in the production of electricity, manufacture of beverages, as well is manufacture of computer, electronic and optical products. (BNN/Business World Magazine)