Lithuania: Inflation continues to slow
August 8, 2011
In July, consumer prices edged down 0.2% over the previous month (June: -0.1% month-on-month), which represents the steepest drop in prices since August 2010. The monthly contraction was driven by lower prices for clothing and footwear as well as for food and non-alcoholic beverages, which were partially offset by higher utilities cost. As a result of the monthly decline, annual headline inflation slowed from 4.8% in June to 4.6% in July, marking a three-month low. In contrast, annual average HICP inflation (based on the harmonized index of consumer prices) stepped up from 3.2% in June to 3.4% in July.