Lithuania: Inflation falls to the lowest level in more than three years
September 9, 2013
In August, consumer prices rose 0.1% over the previous month, which contrasted the 0.7% decrease tallied in July. According to the statistical institute, higher prices for transport as well as for clothing and footwear offset lower prices for food products and non-alcoholic beverages.
Annual headline inflation fell slightly from 0.5% in July to 0.4% in August, the lowest level since April 2010. Meanwhile, annual average HICP inflation (based on the harmonized index of consumer prices) inched down from 2.5% in June to 2.3% in July, the latest month for which data are available.
According to its macroeconomic forecasts from August , the Central Bank expects HICP inflation to average 1.4% in 2013 and 1.5% in 2014. FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 2.0% this year, which is down 0.4 percentage points from last month's estimate. Next year, the panel sees inflation at 2.4%.
Author: Carl Kelly, Economist