Analytics, Baltic, Economics, Inflation, Markets and Companies

While Lithuania's consumer price index rose by 1 percent in June year-on-year, both Latvia and Estonia registered negative annual inflation, at minus 0.7 percent and minus 1 percent, respectively, according to figures from the national statistics offices. 

Year-on-year, services prices jumped by 5.5 percent in Lithuania and went up by 1.3 percent in Latvia, but edged down by 1.2 percent in Estonia.

"A sharp rise in, for example, prices for holiday home services in Lithuania last month shows that the Lithuanian economy is recovering faster than the neighboring countries and that people are inclined to spend money on vacations," Ilekyte said in a press release. 

"Even though the pandemic and the quarantine restrictions financially affected a large part of the country's population, losses were short-lived for most of them, and they are returning to their normal rhythm of life," she added.

Some fruits and cosmetics recorded the largest increases in prices among consumer goods in Lithuania in June, and fuel prices rose slightly. Prices for some vegetables and garden tools moved down amid a seasonal increase in supply. 

Among services, the steepest rise was registered in prices for holiday home services, at 30 percent. This shows that resort towns and rural tourism homesteads are attracting more holidaymakers this year, Ilekyte said. 

Meanwhile, falling tourist numbers have caused hotels, most of which are located in cities and larger towns, to cut prices by around 7 percent on average, she noted. 

Latvian and Estonian statistics show similar trends, with the largest decreases registered in vegetable and fruit prices. Prices for hotel and restaurant services remained almost unchanged in Latvia, but edged down in Estonia, according to the press release.