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International Internet Magazine. Baltic States news & analytics Monday, 10.08.2020, 18:23

Annual HICP inflation in June made 0.9% in Lithuania

Renata Paškevičienė, Statistics Lithuania, Vilnius, 10.07.2020.Print version
In June 2020, according to the harmonised index of consumer prices (HICP), which is methodologically harmonised with those of other EU member states, the calculated: average annual inflation, same as average annual inflation calculated based on the consumer price index (CPI), stood at 1.9 per cent; annual inflation (June 2020, against June 2019) stood at 0.9 per cent, the CPI-based one – 1 per cent in Lithuania.

Change in prices for consumer goods and services in June 2020, compared to May, stood at 0.4 per cent. The change in prices for consumer goods and services calculated based on the CPI stood at 0.5 per cent.




Rates of change in prices for consumer goods and services calculated based on the HICP, June 2020

ECOICOP1 divisions of consumer goods and services

Relative share (weight) in total consumption expenditure, ‰

Price growth, drop (–), %

June 2020, against

Average annual

June 2019–2020
June 2018–2019

May 2020

June 2019

Consumption goods and services

1 000.0

0.4

0.9

1.9

Food products and non-alcoholic beverages

195.2

–0.8

3.1

4.2

Alcoholic beverages and tobacco products

68.6

–0.6

3.2

3.5

Clothing and footwear

68.5

–1.1

–1.0

–0.5

Housing, water, electricity, gas and other fuels

104.4

–0.5

–4.1

–2.6

Furnishings, household equipment and routine maintenance

74.2

0.5

3.1

2.2

Health care

61.9

2.4

6.0

4.6

Transport

157.1

1.9

–5.2

–0.8

Communication

28.7

0.5

2.5

–0.8

Recreation and culture

88.3

2.3

2.0

2.4

Education

11.5

0.2

8.3

6.4

Hotels, cafes and restaurants

68.5

–0.7

2.1

4.6

Miscellaneous goods and services

73.1

1.6

3.4

3.0

___________________________
1 European Classification of Individual Consumption According to Purpose (ECOICOP).


More detailed information on the largest influence on the overall consumer price change is provided in the table:

 

HICP compilation during COVID-19 pandemic

In June, following the imposed quarantine, about 0.8 per cent of prices failed to be collected. Missing prices for package holiday, some sports and recreation, air transport services were estimated taking into account the specificity of the services and applying appropriate price estimation techniques (following the Eurostat recommendations).

In the Database of Indicators, groups of goods and services with lower confidence in price indices and changes will bear the corresponding mark.


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, Monetary Union index of consumer prices and the European Economic Area index of consumer prices. 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.

Classification. For the calculation of the CPI, the Classification of Individual Consumption by Purpose (COICOP 1999) is used. The European Classification of Individual Consumption According to Purpose – (ECOICOP) has been adjusted for the calculation of the HICP.

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.

 

A news release on the July 2020 inflation calculated based on the HICP is due on 11 August 2020.

For more information on the issue, please see the Database of Indicators and Eurostat’s website.

 

Statistical information is produced and disseminated pursuant to the European Statistics Code of Practice.

 

For more terms, please see the Dictionary of Statistical Terms.


Definitions :

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

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

Consumer price index — 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.

Harmonised index of consumer prices — a consumer price index calculated according to the methodology harmonised within the European Union.







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