Annual inflation rises to 2.6% in March
In March annual inflation rose to 2.6% up from 2.1%, while monthly inflation stood at 0.9%. Prices of goods were 2% higher than a year ago, while prices of services grew by 4.3% (mostly due to rising costs of public services).
Increase of monthly inflation was mainly influenced by the price growth of clothing and footwear (by 5.4%), mainly due to new clothes and footwear collections rolling in. Higher rate of excise duty on alcohol and rising fuels costs have also influenced the hike of prices. Annual inflation was mostly affected by the increase of prices in services sector. Clothing and footwear together with communications all cost less than a year ago and together contributed negative 0.15pp to the annual inflation.
Similarly, as in the previous month, housing, electricity and fuel contributed a third to the total growth in consumer prices. When compared to the previous month, the marginally higher contribution to the total growth of inflation was also noticed in food and beverages sector.
Average annual inflation is expected not to exceed 3% in 2019 and 2.5% next year. Inflation of prices of services is expected to continue its growth path due to rapid wage upturn. Prices of public services are also likely not to lose momentum, as they have a tight link to wages.
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Greta Ilekytė, +370 5258 22 75, firstname.lastname@example.org.
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