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Saturday, December 8, 2007

Lithuania Producer Prices November 2007

According to data from Statistics Lithuania, prices for total industrial production sold in September 2007 as compared to August grew by 1.1 per cent (of which for mining and quarrying production rose by 3.5 per cent, manufacturing by 1.2 per cent, and electricity, gas and water supply prices rose by 0.7 per cent, following a 3.5 per cent price rise for gas).

The largest impact on the price change was made by a 4.5 per cent leap in prices for food products and beverages, a 0.6 per cent rise in the cost of refined petroleum products and 0.7 per cent rise in electricity, gas and water supply. There was a 2.7 per cent fall in price of radio, television and communications equipment and apparatus, a 1.2 per cent fall in wearing apparel and a 2.5 per cent fall in machinery and equipment. Refined petroleum products excluded, prices for total industrial output sold grew by 1.3 per cent.

Prices for products sold on the domestic market over a month increased by 1.2 per cent. The largest impact on prices here again was a 3.5 per cent increase in prices for food products and beverages, 0.7 per cent for electricity, gas, steam and hot water, 1.1 per cent for refined petroleum products. There was a 17.0 per cent decrease in prices for wearing apparel, a 5.1 per cent decrease in machinery and equipment, a 2.9 per cent one in radio, television and communication equipment prices, as well as 2.0 per cent decrease in the prices of electrical machinery and apparatus.

Among food products and beverages, the most noticeable increase in prices was observed for grain mill products – 30.8 per cent, dairy products – 9.7 per cent, feed-stuff – 5.8 per cent, bread and fresh confectionery – 3.0 per cent; mineral water and soft drinks went down in price by 2.8 per cent, fish and fish products – 0.4 per cent, meat and meat products – 0.3 per cent. Refined petroleum products industry excluded, prices for products sold on the domestic market increased by 1.2 per cent.

Prices for exported products in September 2007 against August increased by 1.1 per cent. The biggest factor was a 6.6 per cent increase in prices for food products and beverages, 0.5 per cent – refined petroleum products, 1.6 per cent – wearing apparel, as well as a 2.7 per cent decrease in prices for radio, television and communication equipment and apparatus, 0.7 per cent – electrical machinery and apparatus, 1.6 per cent – base metals.

I think if we look at the chart for the evolution of producer prices for the export sector, then the situation and the outlook is pretty clear.

1 comment:

Andromed said...

It should be noted, however, that the rise of the export price at least for the sector of food products does not mean in itself reduction in competitiveness. The rise of agricultural prices around the world allowed producers to increase the prices gaining more profit, or at least sustaining the levels of profit (it can be seen from the reportis in the stock exchange), but not losing profitability or competitiveness.