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VILNIUS, May 8 (Xinhua) -- Less than half a year to the upcoming national elections, Lithuania has found itself amid an unexpected havoc due to increasing
food prices.
The society's resentment was triggered recently by a few notices on the social networks. In some of them, authors expressed their anger due to unusually
expensive cucumbers, tomatoes and other vegetables in the shopping centers.
However, a cauliflower became a symbol of public revolt against food price increase after Nijole Ozelyte, a Lithuanian actress, posted angrily on her FB
profile: "When the last time you paid 12 litas (previous Lithuanian currency)
for a cauliflower?"
She also shared the then price of the cauliflower, 3.49 euros (3.98 U.S. dollars), and pointed to one particular retail chain in Lithuania.
The resentment was spread over the social networks and reached an extent in which the government was forced to react, while famous economists started to dig
what could be the real cause of the alleged price increase.
Lithuania became a member of the euro zone in January 2015, with exchange rate of euro to litas at 1:3.45. It was widely feared that prices for goods and
services would significantly increase immediately after euro introduction due to
customers-unfavorable price rounding, however, initially the process of
transition to the euro was smoother than expected by many.
Nevertheless, some believe that retailers abstained from raising prices right after the euro adoption yet they did so later on.
GOVERNMENT'S REACTIONThe government struggled to explain the reasons of price increase and appease the society.
"I can clearly say that this is not due to the euro; most of the goods are being imported from the euro zone countries, therefore, prices changes are due
to other reasons than euro, such as market challenges, bad harvest and others,"
Algirdas Butkevicius, Lithuania's prime minister, was quoted as saying by the
local media this week.
He acknowledged that prices of certain food products, fruits and vegetables in particular, in Lithuania rose more significantly in the first quarter this
year, compared with the same period in 2015. However, he noted that prices of
certain locally produced meat and dairy products were lower this year.
The head of the government instructed the State Tax Inspectorate (VMI) and the Competition Council to monitor markup of certain product groups.
Lithuania's social democrats, the prime minister's party in the ruling coalition, also initiated reduction of value added tax (VAT) to 5 or 9 percent
rate instead of the current 21 percent on fresh or chilled meat starting October
this year. The proposal will be presented to the government and the parliament.
Loreta Grauziniene, the parliament's speaker, noted later that the proposal could reach the parliament already this summer.
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