Lithuania: Inflation falls to lowest level since March 2010
February 14, 2014
In January, consumer prices inched down 0.1% over the previous month, which matched the drop tallied in December. According to the statistical institute, drastically lower prices for clothing and footwear offset higher prices for food products and non-alcoholic beverages.
Annual headline inflation fell from 0.4% in December to 0.2% in January, which marked the lowest level in nearly four years. Meanwhile, annual HICP inflation (based on the harmonized index of consumer prices) inched down from 0.5% in November to 0.4% in December, the latest month for which data are available. Annual average HICP inflation edged down from 1.4% in November to 1.2% in December.
According to its November macroeconomic forecasts, the Central Bank expects HICP inflation to average 1.5% in 2014. 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