Analytics, Inflation, Lithuania, Markets and Companies
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Thursday, 28.03.2024, 12:11
In July, annual deflation in Lithuania made 0.5%
The overall price change was mainly influenced by a decrease in prices for clothing and footwear, vegetables, as well as by an increase in prices for passenger transport by air, heat energy, pharmaceuticals, catering services of restaurants, cafes and similar establishments, other non-electric appliances, articles and products for personal care, package holidays (see Table 2).
Over the said period, prices for consumer goods decreased by 1%, those for consumer services –increased by 1.1%. The influence of the changes in prices for consumer goods on the overall monthly price change was negative and stood at minus 0.74 percentage points, while the influence of the change in prices for consumer services was positive and stood at plus 0.27 percentage points.
Prices for consumer goods and services regulated by State and municipal authorities increased by 0.7%, while market prices decreased by 0.7%. The influence of the change in prices regulated by State and municipal authorities was positive and stood at plus 0.10 percentage points, while the influence of the change in market prices was negative and stood at minus 0.57 percentage points.
Fig. 1. Monthly changes in prices for consumer goods and services, compared to the previous month |
In July 2015, against June, among food products and non-alcoholic beverages, the largest decrease in prices was observed for vegetables – 10% (a 31.2% price drop was recorded for cabbage, 24.5% – early potatoes, 20.3% – fruit vegetables, 6.3% – green vegetables, while prices for bulb vegetables and root vegetables increased by 10.9% each). Prices for fruit decreased by 2.5% (the largest price drop was recorded for berries – 9.3, bananas – 8, dried fruit and nuts – 2.6%, while citrus fruit went up in price by 14.8%). Prices for sugar dropped by 2.8%, chocolate – 2.4%, baby food – 1.5%, smoked sausages and smoked fish – 0.8% each, fruit and vegetable juice – 0.7%, poultry – 0.6%, while prices for eggs grew by 4.4%, coffee – 2.3%, ice-cream – 2.1%, margarine – 1.8%, pasta – 1.3%, confectionery, cocoa and flour and cereals – 1.2% each, salted fish – 0.9%.
As regards goods related to energy, the largest price drop was observed for liquid fuel – 5.2, solid fuel – 2.8, diesel fuel – 1.5, petroleum – 0.5%, while prices for heat energy grew by 2, liquefied gas for cars – 0.9%.
In the group of miscellaneous goods, the largest price drop was observed for footwear – 7.6, clothing – 7.4, equipment for sport, camping and open-air recreation – 6.6, articles of clothing and clothing accessories – 2.3%, while price growth – tools and equipment for house and garden – 2%, pharmaceuticals and non-electric appliances, articles and products for personal care – 1.1% each, cigarettes – 0.7%.
As for services, the largest increase in prices was observed for passenger transport by air – 23.3%, sanatoriums – 10.1%, package holidays – 3.1%, housing rent – 2.9%, accommodation services – 1.6%.
In July 2015, annual (July 2015 against July 2014) deflation stood at 0.5% (in July 2014, against July 2013, inflation stood at 0.3%).
The annual deflation was mainly influenced by a decrease in prices for fuels and lubricants, solid fuel, milk and milk products, cheese, eggs, electricity, vegetables, meat, heat energy, as well as by an increase in prices for fruit, catering in restaurants, cafes and similar establishments, housing rent, tobacco products, pharmaceuticals, coffee, tea and cocoa, spirits, personal transport maintenance and repair.
Over the year, prices for consumer goods decreased by 1.7%, those for services increased by 3.2%.
In July 2015, against July 2014, prices for consumer goods and services regulated by State and municipal authorities decreased by 1.1%, market prices – 0.4%.
In July 2015, average annual deflation stood at 0.6% (in July 2014, average annual inflation stood at 0.3%).
Table 1. Changes in prices for consumer goods and services, July 2015, %
COICOP divisions of consumer goods and services |
Relative share (weight) of consumption expenditure in total consumption expenditure |
Price growth, drop (–) |
|||
July 2015, against |
average annual |
||||
June 2015 |
2014 |
||||
December |
July |
July 2014–2015 |
|||
Total CPI |
100.0 |
–0.5 |
–0.3 |
–0.5 |
–0.6 |
Food products and non-alcoholic beverages |
24.7 |
–0.7 |
–0.1 |
–1.3 |
–0.3 |
Alcoholic beverages and tobacco products |
7.8 |
0.0 |
0.8 |
1.5 |
3.2 |
Clothing and footwear |
7.8 |
–7.2 |
–8.3 |
0.7 |
–0.6 |
Housing, water, electricity, gas and other fuels |
13.6 |
0.2 |
–5.1 |
–4.0 |
–3.1 |
Furnishings, household equipment and routine maintenance of the house |
5.1 |
0.0 |
1.6 |
2.3 |
0.4 |
Health care |
6.3 |
1.2 |
3.0 |
3.1 |
2.3 |
Transport |
13.3 |
0.6 |
2.8 |
–3.5 |
–5.5 |
Communications |
3.3 |
0.0 |
0.3 |
0.1 |
–1.7 |
Recreation and culture |
6.4 |
0.0 |
2.6 |
1.8 |
1.3 |
Education |
1.7 |
0.0 |
0.3 |
1.8 |
1.5 |
Hotels, cafes and restaurants |
4.3 |
0.9 |
3.5 |
4.8 |
4.2 |
Miscellaneous goods and services |
5.7 |
0.6 |
1.2 |
2.2 |
1.9 |
Table 2. Largest influence on the overall change in consumer prices over the month 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 |
July 2015, against June |
|||
Passenger transport by air |
0.5 |
23.3 |
+0.122 |
Heat energy |
2.8 |
2.0 |
+0.048 |
Pharmaceuticals |
3.6 |
1.1 |
+0.042 |
Catering services of restaurants, cafes and similar establishments |
2.7 |
1.2 |
+0.034 |
Other non-electric appliances, articles and products for personal care |
2.7 |
1.1 |
+0.029 |
Package holidays |
0.9 |
3.1 |
+0.029 |
Clothing |
5.0 |
–7.4 |
–0.366 |
Footwear |
2.5 |
–7.6 |
–0.187 |
Vegetables |
1.6 |
–10.0 |
–0.182 |
Solid fuel |
2.0 |
–2.8 |
–0.051 |
Fruit |
1.6 |
–2.8 |
–0.048 |
Fuels and lubricants |
6.2 |
–0.7 |
–0.044 |
July 2015, against July 2014 |
|||
Fruit |
1.6 |
13.0 |
+0.213 |
Catering services of restaurants, cafes and similar establishments |
2.7 |
6.0 |
+0.154 |
Housing rent |
0.6 |
20.5 |
+0.118 |
Tobacco products |
2.3 |
5.1 |
+0.117 |
Pharmaceuticals |
3.6 |
2.8 |
+0.099 |
Coffee, tea and cocoa |
1.1 |
7.7 |
+0.080 |
Fuels and lubricants |
6.2 |
–7.5 |
–0.539 |
Solid fuel |
2.0 |
–15.3 |
–0.317 |
Milk and milk products, cheese and eggs |
4.0 |
–5.1 |
–0.207 |
Electricity |
2.5 |
–6.3 |
–0.156 |
Vegetables |
1.6 |
–8.0 |
–0.147 |
Meat |
6.4 |
–2.1 |
–0.138 |
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.
In 2015, 907 consumer goods and services, whose retail prices are registered on a monthly basis in 3970 selected enterprises and local units of all forms (public, private) and types (supermarkets, shopping and leisure centres, specialised and non-specialised stores, online shops, kiosks, markets, gas stations, enterprises providing catering and other services) of ownership and sizes (large, middle-sized, small), were selected for the compilation of the consumer price index.
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 %.
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.