The Lithuanian consumer price index (CPI) expanded 1% y/y in April, easing 0.8pp versus the annual reading the preceding month, Statistics Lithuania said on May 11.

The slowdown came mainly on the back of prices falling in the housing and transport sectors, an effect of the falling oil prices because of the coronavirus (COVID-19) pandemic that depressed the global oil market. Further easing of headline inflation is expected in the coming months, as the lockdown introduced to curb the spread of the pandemic will hit labour market and incomes, hurting demand.

Still, price growth in April extends the inflationary trend in Lithuania to 52 months straight. However feeble, growth in the headline CPI was driven by a 3.4% y/y increase in the most-weighted food and non-alcoholic beverages segment, a slowdown of 0.2pp versus the y/y expansion in March.

Prices also expanded 3.7% y/y in the fourth-most weighted alcoholic beverages and tobacco segment, data also showed. Growth in that segment came in at 2.8% y/y the preceding month.

Prices also grew 1.5% y/y (unchanged from March) in recreation and culture and 5% y/y (4.3% y/y in March) in health care.

Among the key segments, prices fell in the second-most weighted transport segment, retreating 4.8% y/y versus an expansion of 0.3% y/y the preceding month. Prices also fell 3.6% y/y in housing, slightly easing the decline rate from -3.7% y/y in February. 

Elsewhere, prices inched down 0.1% y/y – from -0.3% y/y the preceding month - in communications as well as declined 0.6% y/y in clothing and footwear (-0.1% y/y previously).

Overall, prices of goods fell 0.4% y/y in April (after growing 0.5% y/y the preceding month) while services became 4.5% more expensive in annual terms (4.8% y/y).

In monthly terms, the CPI increased 0.1% y/y in April after inching down 0.1% m/m in March.