Economics & Sociology

ISSN: 2071-789X eISSN: 2306-3459 DOI: 10.14254/2071-789X
Index PUBMS: f5512f57-a601-11e7-8f0e-080027f4daa0
Article information
Title: The Research on the Impact of the Changes of Commodity Price Level in the World Commodity Exchanges on Variation of General Price Level
Issue: Vol. 7, No 4, 2014
Published date: 20-11-2014 (print) / 20-11-2014 (online)
Journal: Economics & Sociology
ISSN: 2071-789X, eISSN: 2306-3459
Authors: Algita Miečinskienė
Indrė Lapinskaitė
Keywords: general price level, inflation, commodity price, commodity exchange, market, Lithuania
DOI: 10.14254/2071-789X.2014/7-4/5
Index PUBMS: 1fc997f2-aa13-11e7-8eae-080027f4daa0
Language: English
Pages: 71-88 (18)
JEL classification: E31

The purpose of the paper is to investigate the influence of changes of commodity price level in the world commodity exchanges on variation of general price level index in Lithuania. Object of the research is commodity price level in the world commodity exchanges. The methodology applied is following: study of the recent scientific literature, collection and analysis of statistical data, correlation regression analysis. The conclusion can be made that variation of general price level in Lithuania depends on changes of commodity prices in world commodity exchanges, mostly from the prices of aluminium, cocoa, coal and oil. Regression function made with analysed commodities is adequate to real situation and chosen variables X explain the 64% of inflation variability and 36% are explained by other factors. The results show that the determinate regression function could be practically used to forecast the dependence of inflation rate on the particular factors.