Analytics, Inflation, Lithuania, Markets and Companies

Fig. 1. Monthly rates of change in prices for consumer goods and services as compared with the previous month

In May 2009, a decisive impact on the overall change in consumer prices was made by a 0.6% decrease in prices for food products and non-alcoholic beverages, 0.7% – housing, water, electricity, gas and other fuels group of goods and services, 1.1% – clothing and footwear, as well as by a 1.4% increase in prices for the transport group of goods and services, 1.8% – alcoholic beverages and tobacco products. 

Prices for consumer goods in May 2009, against April, decreased by 0.1%, those for services – by 0.4%. 

A decisive influence on the change in prices for food products and non-alcoholic beverages was made by a 2.5% decrease in prices for milk and millk products, cheese, eggs, 4.6% – fruit vegetables (cucumbers, tomatoes, sweet paprika), 20.6% – cabbage, 2.3% – butter, oil and fats, 1.2% – fruit and berries, 1.9% – chocolate and other confectionery products , 5.3% – rice, 5.8% – groats, as well as by a  5% increase in prices for coffee, 27.1% – root vegetables (carrots, beetroot), 0.5% – cooked sausages. 

The change in prices for the housing, water, electricity, gas and other fuels group of goods and services was mostly conditioned by a 7.7% decrease in prices for liquefied gas for cooking, 3.6% – solid fuel, 1.5% – materials and services for the maintenance and repair of the dwelling. 

In the group of clothing and footwear, due to discounts, a 2.2% price drop was observed for footwear, 0.7% – clothing. Fabrics for clothes went down in price by 0.6%, footwear repair services – by 0.2%. 

The change in prices for the transport group of goods and services was conditioned by a 5.5% increase in prices for petrol, 3.0% – diesel fuel, 2.6% – liquefied gas for cars, 1.3% – local passenger road transport services. Prices for second hand cars went down by 2.9%, passenger air transport services – 5.2%, driving schools’ services – 2.9%. 

The price change for alcoholic beverages and tobacco products was conditioned by a 4.8% price increase for cigarettes. Prices for table wine went up by 1.4%, vodka – 0.6%; prices for beer produced in Lithuania went down by 0.5%. 

Regarding other goods and services which conditioned the overall change in consumer prices in May 2009, against April  the following could be mentioned: a 1.4% decrease in prices for package holidays, 0.6% – furniture, 0.3% – public catering services, 0.2% – pharmaceuticals, 3.1% – recreational services, 1.3% – household textiles, 0.5% – household cleaning and maintenance products, 0.6% – data processing equipment, as well as a 0.9% increase in prices for home and garden tools and equipment, 0.6% – toys. 

In May 2009, annual inflation (May 2009, against May 2008) made up 5.2%. The annual inflation rate was mostly influenced by a 17.9% price rise for the housing, water, electricity, gas and other fuels group of goods and services, 13.4% – alcoholic beverages and tobacco products, 17.3% – health care group of goods and services, 3.6% – food products and non-alcoholic beverages, as well as by a 8.6% decrease in prices for clothing and footwear. 

Prices for consumer goods showed an annual increase of 4.3%, services – 8%. 

In May 2009, average annual inflation made up 9.4%. 

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

Table 1. Rates of change in prices for consumer goods and services, May 2009, %

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 (May 2009, against April 2009)

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

Deflation – the increase in the value of a currency unit, which manifests itself with a decrease in the average general price level.  

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

Average annual inflation shows relative changes of 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.