Analytics, EU – Baltic States, Inflation, Lithuania, Markets and Companies
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Thursday, 28.03.2024, 11:57
Average annual harmonized deflation in Lithuania made 0.5% in September
Average annual inflation calculated based on the CPI was also negative and stood at minus 0.8%.
Average annual inflation calculated based on the HICP |
In September 2015, annual (September 2015, against September 2014) inflation calculated based on the HICP was negative and stood at minus 0.8%. The CPI-based inflation was also negative and stood at minus 1%.
The monthly (September 2015, against August) increase in prices for consumer goods and services calculated based on the HICP stood at 0.6%. Calculations based on the CPI resulted in the same increase.
Table 1. Rates of change in prices for consumer goods and services calculated based on the HICP, September 2015
COICOP/HICP divisions of consumer goods and services |
Relative share (weight) in total consumption expenditure, ‰ |
Price growth, drop (–), % |
||
September 2015, against |
average annual |
|||
August 2015 |
September 2014 |
|||
Consumer goods and services |
1 000.0 |
0.6 |
–0.8 |
–0.5 |
Food products and non-alcoholic beverages |
217.5 |
1.5 |
–1.1 |
–0.6 |
Alcoholic beverages and tobacco products |
84.4 |
–0.2 |
0.8 |
2.6 |
Clothing and footwear |
66.5 |
10.3 |
3.2 |
–0.3 |
Housing, water, electricity, gas and other fuels |
120.8 |
0.4 |
–2.7 |
–2.5 |
Furnishings, household equipment and routine maintenance of the house |
62.8 |
0.2 |
1.7 |
0.9 |
Health care |
63.2 |
–0.2 |
2.6 |
2.2 |
Transport |
153.1 |
–2.6 |
–8.7 |
–6.3 |
Communications |
27.5 |
0.0 |
–0.1 |
–1.1 |
Recreation and culture |
69.9 |
–0.1 |
1.7 |
1.3 |
Education |
12.3 |
2.3 |
3.4 |
1.7 |
Hotels, cafes and restaurants |
43.4 |
–0.3 |
4.3 |
4.5 |
Miscellaneous goods and services |
78.6 |
0.3 |
2.6 |
2.3 |
For the calculation of annual and average annual inflation, monthly price
changes and price changes for other periods, the HICPs calculated based on the
2005 index base period (2005 = 100) accurate to two decimal places are used.
Price indices are published accurate to two decimal places, inflation and price
changes – to one decimal place.
Table 2. Biggest impact on the overall consumer price change by COICOP/HICP class of consumer goods and services
COICOP/HICP classes of consumer goods and services |
Relative share (weight) in total consumption expenditure, ‰ |
Price growth, drop (–), % |
Impact,%age points |
September 2015, against August |
|||
Vegetables |
21.1 |
22.5 |
+0.433 |
Clothing |
43.4 |
9.7 |
+0.388 |
Footwear |
19.8 |
13.4 |
+0.232 |
Products and materials for the maintenance and repair of the dwelling |
20.7 |
1.4 |
+0.029 |
Spare parts and accessories for personal transport equipment |
19.0 |
1.5 |
+0.029 |
Recreational and sports services |
8.6 |
3.1 |
+0.027 |
Fuels and lubricants |
73.9 |
–4.3 |
–0.306 |
Passenger transport by air services |
4.5 |
–19.3 |
–0.101 |
Wine |
17.4 |
–2.0 |
–0.037 |
Fruit |
12.4 |
–2.5 |
–0.035 |
Package holidays |
6.3 |
–5.0 |
–0.035 |
Accommodation services |
8.1 |
–3.6 |
–0.033 |
September 2015, against September 2014 |
|||
Vegetables |
21.1 |
12.3 |
+0.251 |
Clothing |
43.4 |
3.2 |
+0.137 |
Catering services of restaurants, cafés and the like |
25.4 |
4.4 |
+0.117 |
Housing rental services |
5.5 |
21.6 |
+0.115 |
Tobacco products |
25.4 |
4.3 |
+0.112 |
Pharmaceutical products |
39.5 |
2.1 |
+0.086 |
Fuels and lubricants |
73.9 |
–17.1 |
–1.300 |
Milk and dairy products, cheese, eggs |
39.2 |
–5.4 |
–0.213 |
Solid fuel |
13.8 |
–12.2 |
–0.170 |
Beer |
19.8 |
–7.6 |
–0.146 |
Meat |
50.6 |
–2.8 |
–0.146 |
Heat energy |
22.2 |
–6.9 |
–0.110 |
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 of expenditure
on that product in the total consumption expenditure.
DIFFERENCES BETWEEN THE HICP AND THE CPI
Purpose. The HICP is an instrument for measuring inflation in the EU and making international comparisons, as well as for the compilation of the European index of consumer prices (covering 28 EU member states), Monetary Union index of consumer prices (covering 19 EU member states belonging to the euro area: Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia and Spain), and the European Economic Area index of consumer prices (covering 28 EU member states, Iceland and Norway). The extent to which a country fulfils the price stability criterion established in Article 140 of the Treaty on the Functioning of the European Union is measured taking into consideration the inflation rate calculated based on the HICP.
The CPI is used to measure the inflation rate in the country; it is the key instrument for indexation.
Coverage. The HICP, alongside consumption expenditure incurred by the residents of the country, covers consumption expenditure incurred by non-residents and visitors from abroad within the economic territory of the country. The CPI covers consumption expenditure incurred only by the residents of the country within the economic territory of the country. The HICP does not cover household expenditure on games of chance and financial intermediation services, while the CPI does cover them.
Weights. Due to a different coverage of consumption expenditure, weighting systems used for the HICP and CPI compilation differ. This is the primary factor leading to differences in index values.
Classification. For the calculation of the CPI, the Classification of Individual Consumption by Purpose (COICOP) is used. The Classification of Individual Consumption by Purpose adapted to the needs of HICPs has been adjusted for the calculation of the HICP.
Concepts
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 in the reporting month and the corresponding month of the previous year.
Average annual inflation shows the relative change in the average price level in the last twelve months and the corresponding previous twelve months.
Harmonised index of consumer prices is a consumer price index compiled according to a methodology harmonised across the European Union.
Consumer price index is a relative indicator reflecting the overall change in prices for consumer goods and services purchased by households to satisfy their consumption needs over a certain period of time.