Lithuania: Inflation dips in February

Consumer prices fell 0.2% in February from the previous month, contrasting January’s 0.3% increase. According to the Statistical Institute, the print came on the back of lower prices for clothing and footwear, and food and non-alcoholic beverages, which more than offset higher prices for recreation and culture, and housing water, electricity, gas and other fuels.

Inflation fell to 3.5% in February, notably down from December’s 4.0%, and the lowest reading since May, largely on the back of lower prices for consumer goods. Meanwhile, harmonized inflation moderated from January’s 3.6% to 3.2% in February, the lowest print in the last nine months. In turn, annual average harmonized inflation remained flat in February at 3.8%, following 18 consecutive months of increase observed since August 2016.

Lithuania Inflation Forecast

FocusEconomics Consensus Forecast panelists expect harmonized inflation to reach 3.0% in 2018, which is unchanged from last month’s estimate. In 2019, the panel sees inflation slowing to 2.7%.