Analytics, Inflation, Lithuania, Markets and Companies

Over the said period, prices for consumer goods and services increased by 0.7 and 0.4% respectively. The influence of the changes in prices for consumer goods and services on the overall monthly price change was positive and stood at 0.56 and plus 0.10 percentage points.

Prices for consumer goods and services regulated by State and municipal authorities decreased by 1.1%, while market prices increased 0.9%. The influence of the change in prices regulated by State and municipal authorities was negative and stood at minus 0.15 percentage points, while the influence of the change in market prices was positive and stood at plus 0.81 percentage points.

Fig. 1. Monthly changes in prices for consumer goods and services, compared to the previous month

In April 2015, against March, among food products and non-alcoholic beverages, the largest increase in prices was observed for vegetables – 17.9%, fruit – 2.3%, coffee, tea and cocoa – 2.3%, while a decrease in prices was observed for milk and milk products, cheese, eggs – 0.7%.

As regards goods related to energy, the largest increase in prices was observed for liquefied gas for cars – 8.3, petroleum – 0.5, liquefied gas for cooking – 0.4%, while prices for heat energy decreased by 6, diesel fuel – 1.8, liquid fuel – 0.6%.

Out of miscellaneous goods, the largest price growth was observed for clothing – 3.2, footwear – 2.9, recorded media – 2.1, spirits – 2, spare parts and accessories for personal transport equipment – 1.8, wine – 1.6, equipment for sport, camping and open-air recreation – 1.5, electric appliances for personal care – 1.3, photographic and cinematographic equipment – 1.1%, while prices for flowers decreased by 1.8, materials for the maintenance and repair of the dwelling – 0.6%.

As for services, the largest increase in prices was observed for passenger transport by air – 5.6, housing rent – 3.1, culture – 2.9, sanatoriums – 1.8, accommodation – 1.4, repair of household appliances – 1.2, cleaning, repair and hire of clothing – 1.1%, while prices for package holidays decreased by 3.2, other services not elsewhere classified – 1.2%.

In April 2015, annual (April 2015 against April 2014) deflation stood at 1% (in April 2014, against April 2013, inflation stood at 0.2%).

The annual deflation was mainly influenced by a decrease in prices for fuels and lubricants, heat energy, solid fuel, gas, milk and milk products, cheese and eggs, as well as by an increase in prices for coffee, tea and cocoa, catering in restaurants, cafes and similar establishments, fruit, housing rent, tobacco products, wine.

Over the year, prices for consumer goods decreased by 2.4, those for services increased by 3.5%.

In April 2015, against April 2014, prices for consumer goods and services regulated by State and municipal authorities decreased by 2.7%, market prices – 0.8%.

In April 2015, average annual deflation stood at 0.4% (in April 2014, average annual inflation stood at 0.5%).

Table 1. Changes in prices for consumer goods and services, April 2015, %

Table 2. Largest influence on the overall change in consumer prices over the month by COICOP class of consumer goods and services

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 long-term increase in the general price level, resulting in a decrease in the purchasing power of money. Inflation is usually calculated based on the consumer price index and expressed in percent.

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.

More information on the issue is available in the Database of Indicators of Statistics Lithuania.