Significant economic changes have occurred in Lithuania since 1992. Major market reforms were introduced through phased liberalization of producer and consumer prices. Panel data from a Lithuanian Household Budget Survey conducted during 1992-94 were used to estimate demand parameters for aggregated commodity groups. The evidence from the household survey shows the relative stability of demand parameters. Estimated price and expenditure elasticities are consistent with levels of low income countries. Households have been relatively responsive to changes in prices and total expenditure in their purchases during the period of transition.