Lithuania: Inflation holds steady at lowest level in nearly four years
March 10, 2014
In February, consumer prices were flat over the previous month, which represented a slight increase compared to the 0.1% drop tallied in January. According to the statistical institute, higher prices for food and non-alcoholic drinks, as well as for beverages and tobacco products, offset lower prices for communication and for clothing and footwear. Annual headline inflation stabilized at January's 0.2%, the lowest level since March 2010. Meanwhile, annual HICP inflation (based on the harmonized index of consumer prices) inched down from 0.4% in December to 0.2% in January, the latest month for which data are available. Annual average HICP inflation edged down from 1.2% in December to 1.0% in January, marking the lowest level in over three years. The Central Bank's February macroeconomic forecasts state that it expects HICP inflation to average 0.9% in 2014 and 1.5% in 2015. FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 2.1% in 2014, which is unchanged from last month's estimate. Next year, the panel sees inflation at 2.8%.
Author: Carl Kelly, Economist