Lithuania: Inflation continues to rise in April
May 9, 2011
In April, consumer prices rose 1.0% over the previous month, matching the outturn recorded in March. The monthly increase was driven by higher prices for clothing and footwear, which added 3.8% over the previous month. Rising prices for food and non-alcoholic beverages (+2.2% month-on-month) as well as for transport (+1.5% mom) also contributed to the strong April print. As a consequence of the monthly increase, annual headline inflation jumped from 3.8% in March to 4.4% in April. Meanwhile, annual average HICP inflation (based on the harmonized index of consumer prices) also continued on its upward trend, rising to 2.5% (March: 2.1%). Meanwhile, the Central Bank raised its 2011 HICP inflation forecast from 2.8% in February to 3.8%, on the back of higher prices for food and energy. In 2012, the Bank expects inflation to accelerate further to 3.9% (February: 3.4%).