Prices for goods produced in Latvia experienced an increase for the month, but a decrease when compared to the same time last year.
In May 2024, Latvian producer prices displayed a mix of positive and negative trends, with some sectors experiencing price drops while others saw increases.
The prices of products exported to euro-area countries decreased by 1.6%, primarily due to a drop in electricity, gas, steam, and air conditioning supply, as well as a price decline in the manufacture of wood and products of wood and cork (excluding furniture). Conversely, prices of exported products to non-euro area countries rose by 0.4%.
Domestically, the prices of products sold decreased by a significant 6.1%. However, the overall level of producer prices in the Latvian industry increased by 0.4%, with a price drop in electricity, gas, steam, and air conditioning supply and the manufacture of wood and products of wood and cork (excluding furniture) offsetting this increase.
The prices of products exported to non-euro area countries increased by 0.3% in May 2024, while prices of products exported to euro-area countries increased by a modest 0.2%.
Heat supply had a downward impact on the overall level of producer prices in May 2024, as prices in this sector also decreased. On the other hand, the prices of several sectors, such as the manufacture of food products, contributed to the upward trend, pushing prices upward.
The prices of furniture or other product categories were not specified in the data provided for May 2024.
Sources: [1] Central Statistical Bureau of Latvia [2] European Commission - AMECO database
In the context of May 2024, the European Union (EU) financial sector may experience a dip due to a 1.6% decrease in prices of products exported to euro-area countries. On the contrary, the industry sector, particularly in Latvia, posted a minor increase of 0.4% partially due to the export of goods to non-euro area countries.
