OREANDA-NEWS. February 10, 2010. Although during the recent months the population's thoughts of the economic situation in Latvia were permanently unchanged, the latest "DnB NORD Latvian barometer" found out that answering the question on the direction of changes in the economic situation the people more often chose to say that it would worsen. Also, the deflation noticed in the country by statistics, was noticed by only 35% of the population while 19% said they were sure that the prices of the goods and services had rather grown, reported the press-centre of DnB NORD Banka.

When the month-to-month questions of "DnB NORD Latvian barometer" was asked, it was found out that both the direction of Latvian development in general and its economic situation were evaluated with a somewhat higher criticism. Currently only 2% of the respondents think that the economic situation in the country is improving, but 27% have expressed the opinion that is does not change and that is by 4 percentage points lower than in the preceding month.

"During the two preceding months a slight improvement of the population's mood noticed by "DnB NORD Latvian barometer" is suspended. However, in my opinion, without the flow of "surprises" shown by the preparation of 2010 budget the pessimistic mood could gradually subside", said DnB NORD Banka's economic expert Peteris Strautins.

The only question, answering to which the people expressed a more oprtimistic opinion than in the receding month, was related to the household's material well-being projections, because 14% thought that in a year it would slightly improve. This index grew by four percentage points. In turn, 37% of respondents have expressed the opinion that the situation will not change, 26% think that it will somewhat worsen, but 7% say that the situation will worsen considerably.

The latest "DnB NORD Latvian barometer" this time the population's perception of the deflation was clarified: whether within the year the prices of goods and services have went down and in what groups of goods the greatest changes are noted. Only 2% of people believe that the prices in general have reduced considerably while 35% think that they have become slightly lower. 25% of the Latvian population think that nothing has changed to a considerable extent, 19% have expressed the view that the prices have grown up, but 12% think that they have increased considerably.

"The results of "DnB NORD Latvian barometer"evidence that despite the rapid decrease of the economic actvity the prices have been non-flexible and approximately 2% of the respondents have felt the considerable reduction of prices. This is a low indicator," the Economics Minister Artis Kampars says.

The majority or 56% of the respondents expressed the viewpoint that the deflation should be evaluated rather positively or very positively while 20% selected to evaluate it negatively. "DnB NORD Latvian barometer"has found out that 57% of the people think that a year ago the prices have been forced up to have high profits, though now the prices of goods and services have become more adequate.

The respondents of "DnB NORD Latvian barometer" expressed the opinion that the highest reduction in food prices was for milk products: the people selected it in 53% of cases. After that with 31% follow fruit and vegetables, products from them, but the most massive price reduction was for bread and starchy foods.

For the non-food price group 33% of "DnB NORD Latvian barometer" respondents chose the household equipment, 23% - the furniture and 22% thought that the prices of construction materials decreased.

"The differences between the statistical data and the society's perception, without the well-known tendency of Latvian population to interpret the events negatively, may be explained by the fact that the individual consumption basket differs from the average one. Of course, in the situation when the prices of food, heating and the majority of goods go down, more medicaments and public transport services have to be used so that the individual consumption basket would become more expensive", P.Strautins says.

Projecting the price changes in the coming six months, 39% of "DnB NORD Latvian barometer" respondents said that they would not change, 27% thought that they would grow and 17% were sure that they would reduce.

"DnB NORD Latvian barometer"that has become a recognised monthly sociological investigation in this country is carried out every month, and within its framework the events topical for the society in the specific moment are being explored. At the same time, the same group of questions is set to the society from month to month, to demonstrate the general changes in the mood of the society.