Lithuanian PPI deflation eases to -11.4% y/y in June

Lithuanian PPI deflation eases to -11.4% y/y in June
By bne IntelliNews July 12, 2020

Lithuanian producer prices fell 11.4% y/y in June, again driven by reduced oil prices during the coronavirus (COVID-19) pandemic, Statistics Lithuania said on July 10.

The fall deepened after factory gate prices decreased 16.4% y/y in May, making June the fifth consecutive month of PPI deflation. Meanwhile, headline inflation growth accelerated by 0.7pp to 1% y/y in June, Statistics Lithuania said earlier this month. 

The annual fall in the PPI in June was driven by a 12.3% y/y decline in the most weighted manufacturing segment. That marked easing in comparison to a decline of 17.4% y/y the preceding month.

Within the manufacturing segment, prices of refined petroleum products fell 41.4% y/y, an effect of the global oil market depression caused by the COVID-19 pandemic. That is an improvement versus the slide of 57.8% y/y in May.

The utility segment saw factory gate prices drop 1.7% y/y in the sixth month, versus a reduction of 2.6% y/y in May.

Prices in the mining and quarrying sector returned to growth by expanding 0.3% y/y in June, after a fall of 35.8% y/y the preceding month.

In the water supply segment, prices expanded 0.8% y/y in June after increasing 1.1% in annual terms in May.

In monthly terms, PPI expanded 2.7% in June after adding just 0.1% m/m the preceding month, data also showed.