Lithuania: Inflation falls to a two-year low in December

Consumer prices dipped 0.6% from the previous month in December, compared to a 0.1% month-on-month drop in November. According to the Statistical Institute, the reading largely reflected lower prices for transport, and clothing and footwear more than offsetting higher prices for food and non-alcoholic beverages.

Inflation fell from 2.5% in November to a two-year low of 1.9% in December. Annual average inflation edged down to 2.7% in December from 2.9% in the previous month, marking a 16-month low. In a similar fashion, harmonized inflation fell to 1.8% in the same month, from 2.4% in November.

Lithuania Inflation Forecast

FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 2.5% in 2019, down 0.1 percentage points from last month’s estimate. In 2020, the panel sees inflation slowing to 2.4%.