Lithuanian PPI sinks to -15.5% y/y in April as COVID-19 bites

Lithuanian PPI sinks to -15.5% y/y in April as COVID-19 bites
By bne IntelliNews May 12, 2020

Lithuanian producer prices crashed 15.5% y/y in April, once again driven by crashing oil prices in the aftermath of the coronavirus (COVID-19) crisis, data released by Statistics Lithuania on May 12 showed.

The fall deepened after factory gate prices slid 8.9% y/y in March, making April the third consecutive month in which the PPI accelerated fall. Meanwhile, headline inflation growth eased 0.8pp to 1% y/y in April, the country’s statistics office said on May 11.

The annual fall in the PPI in April was driven by a 16.7% y/y decline in the most weighted manufacturing segment. That marked a steep fall compared to a decline of 9.4% y/y the preceding month.

Within the manufacturing segment, prices of refined petroleum products crashed 60.5% y/y, an effect of the global oil market depression caused by the pandemic. That compares to a fall of 38.6% y/y in March.

The utility segment saw factory gate prices drop 2% y/y in the fourth month, versus a reduction of 2.8% y/y in March.

Prices in the mining and quarrying sector accelerated decline to 3.2% y/y in April, after a fall of 2% y/y the preceding month.

In the water supply segment, prices inched down 0.1% y/y in April after increasing 1.8% in annual terms in February.

In monthly terms, PPI slid 5.3% in April after falling 7.3% month on month in March, data also showed.