Analytics, Inflation, Lithuania, Markets and Companies

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In December, annual deflation stood at 0.3% in Lithuania

Nadiežda Alejeva, Statistics Lithuania, 09.01.2015.Print version
Statistics Lithuania informs that in December 2014, compared to November, prices for consumer goods and services decreased by 0.6%. In December, annual (against December 2013) deflation stood at 0.3%.

It was mainly influenced by a decrease in prices for fuels and lubricants and footwear and an increase in prices for passenger transport by air, vehicle insurance services, bread and cereals (see Table 2).

 

Over the said period, prices for consumer goods decreased by 1%, while prices for consumer services grew by 0.7%.

 

Prices for consumer goods and services regulated by State and municipal authorities decreased by 0.2%, market prices – by 0.7%. The influence of the change both in prices regulated by State and municipal authorities and in market prices was negative and stood at –0.03 and –0.58%age points respectively.

 

In December 2014, against November, in the group of transport goods and services, the largest decrease in prices was observed for diesel fuel – by 6.6, petrol – 6.4, liquefied gas for cars – 2.8%, while prices for passenger transport by air services grew by 20.1, bicycles – 0.6%.

 

Prices for footwear decreased by 2.5, clothing articles and accessories – 0.4, clothing – 0.2%, which was influenced by discounts. Footwear repair services went up in price by 0.8%.

 

Out of food products and non-alcoholic beverages, the largest decrease in prices was observed for citrus fruit – by 11.7, onions – 5.1, pears – 4.1, sugar – 3.7, root vegetables – 3.6, green vegetables – 2.9, rice – 2.6, chocolate – 2.5, coffee – 2.3%. An increase in prices was observed for grapes – by 23.9, cabbage – 7.2, bananas – 5.1, meat offal – 2.3, and eggs – 1.8%.

 

In the group of housing, water, electricity, gas and other fuels goods, the largest decrease in prices observed for liquefied gas for cooking – by 1.5, solid fuel – 1.1, heat energy – 1%. Housing rental went down in price by 1.1%.

 

In the group of recreational and cultural goods and services, a 0.8% increase in prices was observed for flowers, 0.6% – package holidays, 0.5% – cultural services; a decrease in prices was observed for toys and games – by 1.9, equipment for the reception, recording and reproduction of sound and pictures – 0.8, sports equipment – 0.7%.

 

In December 2014, annual (December 2014, against December 2013) deflation stood at 0.3% (in December 2013, against December 2012, inflation stood at 0.4%).

 

Over the last year, prices for consumer goods and services regulated by State and municipal authorities decreased by 2.1%, while market prices increased by 0.1%.

 

Over the year, prices for consumer goods decreased by 1.1%. Meanwhile, an upward trend in service prices was observed: in December 2014, against December 2013, service prices grew by 2.4%. Prices increased for most types of services: sewage collection – by 14.1, housing rental – 12.4, hairdressers' and personal grooming establishments' – 5.5, odontological – 4.8, footwear repair – 4.4, transportation – 4.2, catering – 3.8, recreational and cultural – 3.3, accommodation – 0.5%. Prices for certain services decreased: Internet access – by 7.3, passenger transport by air – 3.5, mobile phone connection – 1.7%.

 

Over 2014, the largest decrease in prices was observed for energy goods: gas – by 13.9, fuels – 10.4% (diesel fuel – by 12.9, petrol – 10.1, liquefied gas for cars – 5.3%), heat energy – by 7.9, electricity – 5.4%. Solid fuel went up in price by 9.3%.

 

Out of food products and non-alcoholic beverages, the largest increase in prices was observed for coffee – by 20.1, fruit – 10.6, fish and seafood – 0.8%; the largest decrease in prices was observed for vegetables – by 11.7, sugar, jam, honey, chocolate and confectionery – 1.7, oil and fats – 1%.

 

Out of other goods, the largest decrease in prices was observed for telephone equipment – by 4, second-hand cars – 3.1%; an increase in prices was observed for cold water – by 11, tobacco products – 6.1, beer – 4.9, wine and fermented beverages – 3.5, motorcycles – 3.1, bicycles – 2.1%, new cars and spirits – by 1.9% each.

 

In 2014average annual inflation (2014, against 2013) stood at 0.1% and was by 0.9 percentage points lower than in 2013 (in 2013, against 2012, inflation stood at 1%).


Table 1. Changes in prices for consumer goods and services, December 2014, %

COICOPdivisions of consumer goods and services

Relative share (weight) of consumption expenditure in total consumption expenditure

Price growth, drop (–)

December 2014, against

average annual

November 2014

December 2013

December 2013–2014
December 2012–2013

Total CPI

100.0

–0.6

–0.3

0.1

Food products and non-alcoholic beverages

25.2

–0.3

0.2

0.8

Alcoholic beverages and tobacco products

7.7

–0.8

4.0

3.7

Clothing and footwear

7.0

–1.0

0.5

–0.2

Housing, water, electricity, gas and other fuels

14.1

–0.5

–0.7

–0.9

Furnishings, household equipment and routine maintenance of the house

4.9

–0.6

–0.5

–0.2

Health care

6.2

–0.1

1.8

1.3

Transport

14.2

–2.5

–5.7

–2.0

Communications

3.5

0.3

–3.0

–6.3

Recreation and culture

6.0

0.3

0.5

0.4

Educations

1.7

0.1

1.3

1.1

Hotels, cafes and restaurants

4.0

0.0

3.5

2.9

Miscellaneous goods and services

5.5

–0.1

1.4

0.9


1 Classification of Individual Consumption by Purpose (COICOP).


Table 2. Largest influence on the overall change in consumer prices over the month (December 2014, against November) by COICOP class of consumer goods and services

COICOP classes of consumer goods and services

Relative share (weight) of consumption expenditure in total consumption expenditure,%

Price growth, drop (–),%

Influence, percentage points

 

 

 

 

Passenger transport by air

0.5

20.1

+0.079

Vehicle insurance

0.3

15.0

+0.046

Bread and cereals

4.3

0.3

+0.014

Passenger transport by sea and inland waterways

0.1

21.4

+0.012

Books

0.3

4.0

+0.011

Financial intermediation services indirectly measured

0.2

5.3

+0.011

Fuels and lubricants

7.1

–6.0

–0.406

Footwear

2.4

–2.5

–0.062

Other non-electric appliances, articles and products for personal care

2.6

–2.3

–0.062

Spirits

2.6

–1.8

–0.049

Sugar, jam, honey, chocolate and confectionery

1.6

–2.1

–0.034

Heat energy

3.1

–1.0

–0.028


The overall change in consumer prices is influenced not only by the size of the price change for a certain product but also by the relative share (weight) of expenditure on that product in the total consumption expenditure.


Concepts

Deflation refers to a long-lasting decrease in the general price level, which results in an increase in the purchasing power of money.

 

Inflation is a decrease in the purchasing power of a currency unit, which manifests itself in a long-term increase in the average general price level.

 

Annual inflation shows the relative change in the average price level between the reporting month and the corresponding month of the previous year.

 

Average annual inflation shows the relative change in the average price level between the last twelve months and the corresponding previous twelve months.

 

For more information, see the Database of Indicators.






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