Lithuania: Inflation continues its ascent in August

Consumer prices in Lithuania were flat in August from the previous month, following July’s 0.3% decrease. According to the Statistical Institute, the figure mostly reflected higher prices for transport, hotels, cafés and restaurants, and food products and non-alcoholic beverages offsetting lower prices for clothing and footwear, furnishings and health care

Inflation came in at a multi-year high of 4.4% in August, above July’s 3.9%. Meanwhile, harmonized inflation (based on the Harmonized Index of Consumer Prices, HICP) came in at an almost six-year high of 4.6% in August, up from July’s 4.1%. Lastly, annual average HICP inflation rose from 2.3% in July to 2.7% in August.

FocusEconomics Consensus Forecast panelists expect harmonized inflation to reach 1.6% in 2017, which is down 0.1 percentage points from last month’s estimate. In 2018, the panel sees inflation accelerating to 2.2%.