Household consumption expenditure is one of the main indicators that allow us to judge the current level of well-being of people and the country, therefore considerable attention is paid to consumption issues in the scientific literature. Changes in inflation undoubtedly affect consumption expenditure, as the decreasing purchasing power of households leads to inflationary expectations, changes in consumption behavior, the amount of expenditure and the structure of the basket. Much of the research on the relationship between inflation and consumption focuses on the effect of inflation expectations on consumption, but research on how actual inflation changes the consumption basket is lacking. there is still no clear answer to how inflation affects the consumption basket, and research results often depend on country specifics. Thus, the aim of this project is to study trends in the structure of consumption expenditure and its causes in Lithuania and to determine the influence of inflation on it.
Period of project implementation: 2024-07-01 - 2024-08-31
