In October the level of producer prices in Latvian industry dropped by 0.6%. The level of prices of products sold on the domestic market dropped by 0.6%, and prices of exported products – by 0.5%.
The level of prices of products exported to euro area countries decreased by 0.4% and of products exported to non-euro area countries – by 0.6%, according to data from the Central Statistical Bureau of Latvia.
Over the month, the most significant impact on producer prices was made by the price drop in heat supply and manufacture of wood and of products of wood and cork, except for furniture. Manufacture of basic pharmaceutical products and pharmaceutical preparations had upward effect.
Compared to October 2018 the average level of producer prices in the Latvian industry dropped by 0.2% in October. The level of prices of products sold on the domestic market has increased by 1.7%, but prices of exported products – decreased by 1.9%. Prices of products exported to euro area countries have reduced by 1.4% and of products exported to non-euro area countries – by 2.3%.
Manufacture of wood and of products of wood and cork, except for furniture, had the most significant downward impact on the producer price changes during the year. Production and trade of electricity, as well as manufacture of selected food products had upward effect.
This year information on producer prices in industry is provided by more than 600 enterprises, which inform the CSB about approximately 2.4 thousand prices every month – 1.3 thousand of which are related to products and industrial services sold on the domestic market and 1.1 thousand relating to prices on the export markets, with the respective information being then used for index calculations. (BNN/Business World Magazine)