Lithuania: Inflation picks up in February
March 8, 2011
In February, consumer prices increased 0.1% over the previous month, which was below the 0.4% increase recorded in January. Prices for food and non-alcoholic beverages, which added 1.4% over the previous month, were the main driver behind the monthly increase. Despite the subdued monthly price increase, annual headline inflation increased from 2.9% to 3.1%, mainly due to a strong base effect, as consumer prices had dropped 0.1% in February 2010. Meanwhile, annual average HICP inflation (based on the harmonized index of consumer prices) stepped up from January's 1.5% to 1.8%, marking the fifth consecutive increase. The Central Bank expects HICP inflation to average 2.8% in 2011 and increasing to 3.4% in 2012.