OREANDA-NEWS. April 08, 2008. Annual inflation reached 16,8 percent in March, the Latvian Central Statistical Bureau announced.

In year's time the prices for goods have increased by 16,5 percent, and by 17,4 percent for services.

12 months consumer price level growth in March, comparing to February, has increased by 0,1 percent, the annual inflation in February was 16,7 percent.

The growing annual inflation was mainly influenced by the surge of heat supply tariffs, as well as soaring prices for fruits and vegetables. The growth of prices for meat, dairy products, vehicle purchase, clothes, as well as the increase of accommodation rent has been slower than last year.

Average 12 months consumer price level in March, comparing to the previous 12 months, has increased by 12,3 percent.

Comparing to February, in March the inflation was 1,5 percent, including 1,4 percent for goods and 1,7 percent for services. The average consumer price level in March this year increased by 1,4 percent.

In the first three months of this year in total the prices have increased by 5,7 percent. In the respective period of last year prices rose by 3,3 percent. This year the price level increased mainly due to the soaring prices for tobacco products, milk, cheese and eggs, catering services, heat and water supply and other household maintenance services, as well as the surge of petrol prices.

Increase in prices for heat supply, petrol, footwear and clothes had the greatest impact on change in consumer prices. In March the heat supply prices increased on average by 6,4 percent. Heat supply in Riga became by 9,2 percent more expensive.

Due to the end of sales and beginning of the spring season, clothing prices rose by 4 percent, footwear - by 7,7 percent.

Petrol became on average by 3,1 percent more expensive.

More expensive became also food products: fruits, vegetables, bread and cereals, fish and fish products, sweets, honey, vegetable oil, eggs and other food products. Alcohol prices rose on average by 2,3 percent and especially for the strong spirits - by 4,2 percent.

The prices climbed for solid fuel, liquefied natural gas, flowers, books and personal care goods. More expensive became tourism and culture services, some household maintenance services, ambulatory services, insurance, finance services, land transport passenger traffic and maintenance of personal transport vehicles.

Prices continued to grow for catering services, especially in the canteens of schools and institutions.

As a result of reductions, the prices dropped for some milk products, cheese, poultry, sugar and coffee. Also main household appliances, television, audio, video and data processing appliances, as well as telephones became less expensive.

As reported, inflation last year reached 14,1 percent, which is the highest inflation index in the last ten years. The consumer prices in 2006 increased by 6,8 percent.