Lithuania: Inflation holds steady for third month in a row
May 9, 2014
In April, consumer prices increased 0.3% over the previous month, which was down slightly from the 0.4% rise registered in March. According to the statistical institute, the increase was mainly driven by a large jump in prices for both clothing and footwear as well as for alcoholic beverages and tobacco.
Annual headline inflation was unchanged at the 0.2% tallied in the three previous months. Meanwhile, annual HICP inflation (based on the harmonized index of consumer prices) ticked up from 0.3% in February to 0.4% in March, the latest month for which data are available. Annual average HICP inflation edged down from 0.8% in February to 0.7% in March, marking the lowest level since October 2004.
The Central Bank expects HICP inflation to average 0.9% in 2014 and 1.5% in 2015. FocusEconomics Consensus Forecast panelists expect harmonized inflation to average 1.2% in 2014, which is down 0.2 percentage points from last month's estimate. Next year, the panel sees inflation at 2.3%.
Author: Carl Kelly, Economist