Lithuania: Inflation moderates in December
January 10, 2012
In December, consumer prices fell 0.2% over the previous month (November: +0.2% month-on-month), which represented the first monthly drop after three consecutive increases. The fall reflects lower prices for clothing and footwear, as well as for transport, which were only partially offset by higher prices for food products and non-alcoholic beverages. Annual headline inflation dropped from 4.4% in November to 3.4% in December, its lowest rate since February 2011. Moreover, annual HICP inflation (based on the harmonized index of consumer prices) fell from 4.4% in November to 3.5% in December. Despite the sharp moderation seen in HICP inflation in December, the trend was stable, with the annual average remaining unchanged at November's 4.1%, which is broadly in line with the Central Bank forecast that had average HICP inflation at 4.2% in 2011. According to its 10 November macroeconomic forecast, the Central Bank expects HICP inflation to average 3.0% in 2012.