OREANDA-NEWS. On August 08, 2007 consumer prices in Latvia increased 9,5 percent this past July compared to July 2006, the Central Statistical Bureau said.

Prices for goods increased 8,2 percent and prices for services 13 percent.

Compared to June, inflation in July increased 1,2 percent. Prices for goods grew 1,2 percent and prices for services 1,3 percent.

Higher prices for tobacco products, housing maintenance, heat energy and fruit had the biggest effect on inflation in July, as well as a decrease in prices for garments.

Due to an increase in excise duty, the prices of tobacco products grew by 14 percent in July. Although the excise duty was raised in January, the prices for tobacco products only started to grow in June.

Services related to maintenance of housing and heat energy became more expensive, by 10,7 percent and 3,3 percent, respectively.

In the food group, a 7,4 percent increase in the prices of fruit had the greatest impact on the price increase. Prices of bread and cereal products increased 2,2 percent, meat and meat products – 1,2 percent, and dairy products – 2,8 percent.

Prices for catering services grew 1,5 percent, personal care institution services – 3,2 percent, insurance – 1,2 percent, financial services - 8 percent.

Due to the seasonal sales, the prices of clothing fell 4,5 percent and prices of footwear 3,5 percent. Prices for data processing equipment decreased 1,3 percent, TV, audio, video, photo equipment – 1,2 percent, telephones – 1,5 percent. Package holidays became 0,6 percent less expensive, and sport and recreational equipment – 5,9 percent less expensive.

As reported, annual inflation in June totaled 8,8 percent in Latvia.