You are here:
- Newsroom >
- Flash comment: Lithuania - January 9, 2012
Flash comment: Lithuania - January 9, 2012
09-01-2012 09:50
Prices decreased in December, annual inflation will decelerate further
- Consumer prices decreased by 0.2% in December, and average annual inflation was 4.1% at the end of 2011. Annual inflation dropped from 4.4% in November to 3.4% in December and is expected to decline further this year.
- Overall, in 2011 the main source of inflation was due to more expensive food and non-alcoholic beverages, housing and transportations costs, all of which increased by slightly more than 8%. During 2011, clothes and footwear, furnishing, communications and leisure were cheaper than in previous twelve months.
- Although there is no clear trend in inflation expectations yet, domestic and external price pressures will remain relatively weak this year. Uncertainty in euro zone economy and looming recession in the region will keep wage growth expectations anchored. Furthermore, slower global growth will cap the growth of commodities’ price – oil, metals and food is expected to be cheaper in 2012. Thus, we keep our inflation forecast unchanged and expect prices to increase by 2.5% this year and by 3% in 2013.
