Analytics, Inflation, Lithuania

Figure 1. Monthly changes in prices for consumer goods and services as compared with the previous month

In July 2010, compared to June, the overall price change was mostly influenced by a 2.2% increase in prices for housing, water, electricity, gas and other fuels group of goods and services, 0.8% – recreation and culture goods and services, as well as by a 4% decrease in prices for clothing and footwear, 0.5% – furnishings, household equipment and routine maintenance of the house goods and services.

Prices for consumer services over the period in question increased by 0.4%, while prices for goods decreased by 0.1%.

The greatest impact on the change in prices for housing, water, electricity, gas and other fuels group of goods and services was made by a 17.9% increase in prices for natural gas, 11.7 – solid fuel, 4.4% – actual rentals for housing. Electricity went down in price by 0.9%.

The increase in prices for recreation and culture goods and services was conditioned by a 5.6% increase in prices for package holidays. Flowers went down in price by 1.1%, goods for sport – 4%, video equipment – by 0.6%.

Monthly changes in prices for clothing and footwear were conditioned by a decrease – due to discounts – in prices for clothing (by 4.4%) and footwear (3.6%). Fabrics for clothing went down in price by 0.5%, while prices for dry cleaning, repair and hire of clothing increased by 0.3%.

The decrease in prices for furnishings, household equipment and routine maintenance of the house goods and services was conditioned by a 2.9% decrease in prices for materials for household cleaning and maintenance, 1.6% – refrigerators and freezers, 0.9% –glassware, tableware and household utensils, 0.6% – washing machines and dishwashers, 2.5% – tools and equipment for garden. Prices for cleaning equipment and bed cloth increased by 3.3 and 0.7% respectively.

As regards other goods and services which conditioned the overall change in consumer prices, the following could be mentioned: a 10.8% increase in prices for citrus fruits, 0.7% – milk and its products, cheese, 7.4% – passenger transport by air, 1.6 – coffee, 2.7 – sanatorium services, as well as by a 3.4% decrease in prices for vegetables and potatoes, 0.8% – bread and other bakery products, 6.6% – bananas, 0.6% – mobile telephone communication services, 1.8% – second-hand cars, 2.2% – eggs.

In July 2010, compared to July 2009, annual inflation stood at 1.9%. It was mainly influenced by a 11.9% increase in prices for alcoholic beverages and tobacco products, 7.1% – housing, water, electricity, gas and other fuels group of goods and services, 6.3% – transport goods and services, as well as by a 5.1% decrease in prices for clothing and footwear, 5% – communications goods and services, 2.5% – recreation and culture goods and services.

Figure 2. Annual rates of change in prices for consumer goods and services against the respective month of the previous year

Over the year, consumer goods went up in price by 2.8%, while prices for services dropped by 0.9%.

In July 2010, average annual inflation stood at 1%.

Table 1. Rates of change in prices for consumer goods and services, July 2010,%

Table 2. COICOP classes of consumer goods and services whose rates of change in prices had a decisive influence, on the overall price change over the month (July 2010, against June)

Concepts

Inflation – a decrease in the purchasing power of a currency unit, which manifests itself in a long-term increase in the average general price level.

Annual inflation shows relative changes in the average price rate between the current month and the corresponding month of the previous year. 

Average annual inflation shows relative changes in the average price rate between the average of the latest twelve months and the average of the corresponding previous twelve months.

COICOP – Classification of Individual Consumption by Purpose.