Flash comment: Lithuania - January 9, 2017
Annual inflation jumped to 1.7% at the end of 2016

Annual consumer price growth accelerated to 1.7% in December. Higher prices of food products (dairy products, meat), alcoholic drinks (beer), fuels, tobacco products as well as restaurant services contributed the most to annual inflation. In monthly terms the consumer price index increased by 0.4%, while average annual inflation accelerated to 0.9%.

Prices of goods increased by 1.5% in December – that was the highest growth rate since the beginning of 2013. After a temporary setback in November annual growth in the prices of services picked up again.

Outlook: faster price growth next year

Rising prices of commodities and increasing labour costs will push annual inflation higher this year. We expect that average annual inflation will reach 3.0% this year and will decelerate to 2.5% in 2018.

For more information about this report, please contact Mrs. Laura Galdikienė, +370 5 258 2275, Laura.Galdikiene@swedbank.lt

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