Prices for industrial production sold in Lithuania decreased by 1.6% in January

The overall price change was mainly influenced by a 13% decrease in prices for the production of the manufacture of refined petroleum products, 0.9% – beverages, as well as by an 8.3% increase in prices for the production of electricity, gas, steam and air conditioning supply (electricity – by 11.6, steam and air conditioning supply – by 6.5, gas – by 4.2%), 17.4% – tobacco products (see Table 2).

Over the month, prices for industrial production sold on the Lithuanian market increased by 0.6%. The largest increase in prices was observed for the production of electricity, gas, steam and air conditioning supply (8.3%) and the production of the manufacture of other non-metal mineral products (1.8%). A price drop was observed for the production of the manufacture of refined petroleum products (9.4%) and chemicals and chemical products (3.1%). Prices for food products decreased by 0.4%, of which processed and preserved meat – by 4.1, cocoa, chocolate and sweets – by 3.4%. Meanwhile, meat and poultry products went up in price by 1.2, bread and fresh pastry goods – by 0.7%

Over the month, prices for products sold on the non-Lithuanian market decreased by 3.2%. A decrease in prices was observed for the production of the extraction of crude petroleum (34.1%) and manufacture of refined petroleum products (14.3%), while an increase – for the production of the manufacture of tobacco products (17.4%).

Over the month, prices for industrial production sold in the euro area decreased by 3.3, in the non-euro area – by 3.2%.

Over the year (January 2016, against January 2015), prices for the total industrial production sold decreased by 6.1, refined petroleum products excluded – by 1.9%. It was mainly influenced by a decrease in prices for the production of the manufacture of refined petroleum products (24%) and chemicals and chemical products (3.7%).

The largest price drop – of 28.9% – was observed for the production of the extraction of crude petroleum, while prices for the production of the manufacture of tobacco products grew by 17.4%.

Over the year, prices for industrial production sold on the Lithuanian market decreased by 4.8%, refined petroleum products excluded – by 2.4%. It was mainly influenced by a decrease in prices for the production of the manufacture of refined petroleum products (23.8%) and an increase in prices for the production of the manufacture of paper and paper products (3.6%).

Over the year, prices for industrial production sold on the non-Lithuanian market decreased by 7.1, refined petroleum products excluded – by 1.3%. It was mainly influenced by a decrease in prices for the production of the manufacture of refined petroleum products (24.3%) and an increase in prices for the production of the manufacture of wearing apparel (3.9%).

Table 1. Changes in prices for industrial production sold, January 2016, %

Economic activities	Relative share (weight) in total industrial production	Price growth, drop (-) January 2016, against
		2015
		December	January
Total industrial production sold	100.0	−1.6	−6.1
Mining and quarrying	1.0	−1.5	−5.8
Manufacturing	88.3	−2.7	−6.5
Manufacture of refined petroleum products	15.9	−13.0	−24.0
Electricity, gas, steam and air conditioning supply	9.8	8.3	−1.9
Water supply; sewerage, waste management and remediation activities	0.9	0.0	−11.4
Total industrial production, refined petroleum products excluded	84.1	0.6	−1.9
Manufacturing production, refined petroleum products excluded	72.4	−0.4	−1.5
Total industrial production sold on the Lithuanian market	100.0	0.6	−4.8
Mining and quarrying	1.5	0.9	−2.6
Manufacturing	74.6	−1.7	−5.4
Manufacture of refined petroleum products	9.6	−9.4	−23.8
Electricity, gas, steam and air conditioning supply	22.7	8.3	−1.9
Water supply; sewerage, waste management and remediation activities	1.2	0.0	−10.9
Total industrial production sold on the Lithuanian market, refined petroleum products excluded	90.4	1.7	−2.4
Manufacturing production, refined petroleum products excluded	65.0	−0.6	−2.1
Mining and quarrying	100.0	−3.2	−7.1
Manufacturing	0.6	−6.5	−11.8
Manufacture of refined petroleum products	98.8	−3.2	−7.1
Electricity, gas, steam and air conditioning supply	20.7	−14.3	−24.3
Water supply; sewerage, waste management and remediation activities	-	-	-
Mining and quarrying	0.6	−0.1	−12.6
Total industrial production sold on the non-Lithuanian market, refined petroleum products excluded	79.3	−0.4	−1.3
Manufacturing production, refined petroleum products excluded	78.1	−0.3	−1.2
Total industrial production sold in the euro area	100.0	−3.3	−7.9
Total industrial production sold in the non-euro area	100.0	−3.2	−6.5

- such a phenomenon (indicator) was not observed during the respective period.

Table 2. The greatest influence on the monthly (January 2016, against December 2015) change in prices for industrial production sold by EVRK Rev. 2 (1) section, percentage points

EVRK Rev. 2¹ code	Economic activities	Influen- ce	EVRK Rev. 2 code	Economic activities	Influen- ce
Total industrial production sold
35	Electricity, gas, steam and air conditioning supply	+0.818	31	Manufacture of furniture	–0.016
12	Manufacture of tobacco products	+0.036	14	Manufacture of wearing apparel	–0.017
23	Manufacture of other non-metallic mineral products	+0.029	06	Extraction of crude petroleum	–0.019
13	Manufacture of textiles	+0.018	11	Manufacture of beverages	–0.025
08	Mining and quarrying	+0.005	19	Manufacture of refined petroleum products	–2.069
Industrial production sold on the Lithuanian market
35	Electricity, gas, steam and air conditioning supply	+1.887	31	Manufacture of furniture	–0.053
23	Manufacture of other non-metallic mineral products	+0.077	10	Manufacture of food products	–0.100
17	Manufacture of paper and paper products	+0.020	11	Manufacture of beverages	–0.102
08	Mining and quarrying	+0.014	20	Manufacture of chemicals and chemical products	–0.122
13	Manufacture of textiles	+0.004	19	Manufacture of refined petroleum products	–0.906
Industrial production sold on the non-Lithuanian market
12	Manufacture of tobacco products	+0.064	28	Manufacture of machinery and equipment n.e.c.	–0.023
11	Manufacture of beverages	+0.034	14	Manufacture of wearing apparel	–0.023
13	Manufacture of textiles	+0.028	06	Extraction of crude petroleum	–0.034
10	Manufacture of food products	+0.023	20	Manufacture of chemicals and chemical products	–0.329
31	Manufacture of furniture	+0.012	19	Manufacture of refined petroleum products	–2.960

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¹ National version of NACE Rev. 2.

The overall change in prices for industrial production sold is influenced not only by the rate of change in prices of a certain product but also by the relative share (weight) of the industrial production sold within certain economic activity in the total industrial production.

Statistics Lithuania annually revises and updates the list of enterprises engaged in industrial activities, the list of representative products used in the statistical survey, and the weighting system used for the calculation of the producer price index (PPI).

The new weighting system for the calculation of the PPI in 2016 is based on the 2014 data on industrial production sold, classified according to the Classification of Products and Services (Produktų, gaminių ir paslaugų klasifikatorius, PGPK), in value terms. According to the Laspeyres formula used in the calculations, the weight base period has to match the price base period. The price base period is December 2015, i.e. in 2016, monthly prices are compared against the said base period. Therefore, statistical data on the amount of production sold in 2014 were recalculated using the respective producer prices indices and, as a result, expressed in December 2015 prices.

The current weighting system comprises 519 selected PGPK codes. The share of industrial production sold under these product categories accounts for about 80% of the total industrial production sold in 2014.

In 2016, 723 industrial enterprises participate in the statistical survey. Every month, they provide prices for 1852 representative products: 563 enterprises – on prices for 1142 products sold on the Lithuanian market, 357 enterprises – on prices for 710 products sold on the non-Lithuanian market.

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