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

Inflation is not an increase in prices for certain goods, services or their groups. Inflation means an increase in the general price level for all goods and services. However, prices of some goods and services may remain unchanged or, actually, decrease even amidst inflation.

Inflation is expressed in per cent.

Inflation is contrary to deflation. Deflation is the increase in the value of a currency unit, which manifests itself in a decrease in the general average price level.

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

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

To measure inflation in Lithuania, the consumer price index (CPI) is used. It is the main indicator of consumer inflation, reflecting the average change in the price level for consumer goods and services purchased, paid for and used by households to satisfy their consumption needs over a certain time period. The CPI does not cover goods and services intended for production, profit, capital formation.

The CPI is the main means for the indexation of pensions, wages and salaries, benefits, fines, taxes, indemnity rates. It is also used for the recalculation of various indicators at constant prices, as well as for analytical and forecasting purposes.

The basis for the CPI calculation is data on prices and tariffs for representative goods and services and expenditure of the population on consumer goods and services. The main source of information on prices is registration of prices and tariffs for representative goods and services in the trade and service outlets of all forms of ownership sampled. The change in the price level for every good or service has a different influence on the all-items CPI. This is determined by the relative share (weight) of expenditure on every good or service in the overall structure of household monetary consumption expenditure. Hence, when calculating the CPI, the ratios of prices for consumer goods and services are counterweighted using the relative shares (weights) of expenditure on consumer goods and services in total household monetary consumption expenditure. Data on household monetary consumption expenditure from the Household Budget Survey serve as a basis for the compilation of weights.

The main information on the CPI is available on the Official Statistics Portal.

Document updated: 2024-02-14

Information on this webpage is not translated into English.

Document updated: 2024-02-14

Information on this webpage is not translated into English.

Document updated: 2024-02-14

Statistics Lithuania
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