Lithuania: Inflation continues its ascent in July

Consumer prices in Lithuania fell 0.3% in July from the previous month, contrasting revised 0.3% increase observed in June and marking the lowest reading in almost one year. According to the Statistical Institute, the figure mostly reflected lower prices for clothing, footwear and vegetables, which more than offset higher prices for passenger air transport services, tobacco, paramedical services, oil and gas, gas and holiday vacations.

Inflation came in at a multi-year high of 3.9% in July, above June’s 3.6%. Meanwhile, harmonized inflation (based on the Harmonized Index of Consumer Prices, HICP) came in at an over five-year high of 4.1% in July, up from June’s 3.5%. Lastly, annual average HICP inflation rose from 2.0% in June to an 2.3% in July.

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%.