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This year’s trends show that inflation in Lithuania is growing. The Statistics Department has announced that the annual inflation estimate (March this year, compared to March 2020) is 1.6 percent. In February, it stood at 0.4 percent.
In late March, the Finance Ministry forecast an acceleration in inflation this year, reaching 1.1 percent last year. It is announced that this year the average price of goods and services could be around 1.8 percent, and in the following years the growth of prices will approach 2 percent. These are higher than previously anticipated.
Experts warn that money kept in socks or bank accounts depreciates due to inflation. In general, interest on deposits is also lower than inflation.
Experts point out that in a few years it will be possible to buy with cash or with money in a bank account for much less. According to INVL Asset Management, the euro has depreciated 38% over the past 20 years and may depreciate another 21% over the next 10 years.
Losses are significant even over a one-year period. With the dedication of 1,000 euros at the end of 2018, at the end of 2019, you could only buy what cost 973 euros. That is, 27 euros were “eroded” by inflation.
It is true that, in some cases, money kept in a bank account or a deposit can also be an appropriate means of accumulating money.
Investment experts have shared advice on when it is best to just save money in a bank or deposit account, and when it is best to invest it so that it does not lose value and yield a return for you.
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