According to economists, the general level of inflation should remain low throughout the year due to cheaper energy, but food prices should not be expected.
More about this in TV3 news.
The people of Šiauliai complain that pampering their stomachs is getting more and more expensive, even though statistics prove that food is now almost 2 percent. cheaper than a year ago:
“I haven’t noticed anything going down, except for shares, nothing else.”
“Everything just keeps getting more expensive, new prices every day.”
“I only buy with shares, and it’s so expensive without shares.”
“You just go, look, it was cheaper, and the next day it was more expensive.”
“What is no longer necessary is cheap.”
Do not expect the price level to decrease
Preliminary statistics from the data agency show that meat costs 2 percent. more expensive than a year ago, and they promise to announce the price of other products later. Since the beginning of the year, food prices have already risen by almost half a percent. Economists do not expect the general level of food prices to decrease, although with cheaper electricity, gas and fertilizers, it must be cheaper to produce food.
“I wouldn’t expect a very big drop in food prices, despite the fact that fertilizer prices are down a lot at the moment. Many may expect the phenomenon that commodity prices will return to an adequate level, but I don’t think so,” says Citadele economist Aleksandar Izgorodin.
Pricer representatives, who monitor prices in stores, say that both Lithuanian and previously cheaper Polish products are becoming more expensive on the shelves, and statistical price growth was slowed down only by the Easter price wars in stores.
“Our milkmen extort money from the consumer for loyalty, Polish products occupied 5 percent. of the market 10 years ago, now it is 15%, it has grown 3 times”, says Pricer analyst Petras Čepkauskas.
Electricity, gas, solid fuel became cheaper
Traders are happy in March compared to last year’s March, 5 percent. higher turnover. However, according to Pricer, this growth was also due to the fight for the more open wallets of Easter shoppers.
In restaurants and canteens, the price of food increased by one-tenth during the year, which is as much as the increase in VAT after the Seimas canceled the relief applied. Preliminary data on general inflation show that it grew by just 0.4 percent over the year. and the fact that it is so small is said to be largely due to cheaper energy. Solid fuel is now a third cheaper than a year ago, electricity has become cheaper, and gas has become cheaper by a fifth.
“After a huge jump in 2022 and 2023 at the beginning, now we have stabilization. Naturally, we have a respite after the jump. Energy prices have decreased all over the world and in Lithuania”, assures SEB bank economist Tadas Povilauskas.
“The slowdown in inflation could have been greater had it not been for the tax changes that took place at the beginning of the year. Alcohol, tobacco, restaurant services are the most expensive. Not because manufacturers or restaurants raise prices because they want to, but because their taxes have been raised since the beginning of the year,” says Aleksandrs Izgorodin.
Fuel is getting more expensive
However, pharmaceutical products and medical care rose in price by a tenth over the year, and social security by almost a fifth. Drivers are also not happy with the rising prices of fuel at gas stations. Since the beginning of the year, the price of a liter of gasoline has increased by almost 15 cents, so it costs less in Poland again.
“For some time now, we have seen the price of gasoline in Lithuania rise by 5 cents in April. This is not unusual, historically it has happened that prices rise before the more intensive driving season”, says the director of the energy agency Agnė Bagočiutė.
Only diesel in Lithuania is still cheaper than in Poland, since the beginning of the year, the price of a liter has increased by 4 cents.
Learn more about it in the video report at the top of the article.
