Lithuanian inflation eases to 2.6% y/y in August

Lithuanian inflation eases to 2.6% y/y in August
By bne IntelliNews September 9, 2019

The Lithuanian consumer price index (CPI) expanded 2.6% y/y in August, easing 0.1pp versus the annual reading from the preceding month, Statistics Lithuania said on September 9. 

Price growth in August extends the inflationary trend in the Lithuanian CPI to 44 months. The slightly slower price growth appears in line with analysts’ prediction for a gradual easing of inflation towards the end of the year.
Growth in the headline CPI was driven by a 5.1% y/y increase in the most-weighted food and non-alcoholic beverages segment, data showed. Prices also grew 0.9% y/y in housing and 3.8% y/y in the alcoholic beverages and tobacco products segments. 

CPI expansion was impeded to an extent by prices falling 0.2% y/y in the second-most weighted transportation segment, data also showed. Prices also retreated 1.6% y/y in clothing and footwear and 2.4% y/y in communications.

Overall, prices of goods expanded 1.8% y/y in August, while services became 4.5% more expensive in annual terms.

In monthly terms, CPI fell 0.4% in the eighth month, compared to a dip of 0.3% m/m in June.

Average annual inflation is expected at 2.5% in 2019, Swedbank predicts. The European Commission predicts a bigger slowdown, putting CPI growth at 2.2% in 2019 in its latest economic outlook. SEB forecasts price growth of 2.4%. Inflation came in at 2.5% in 2018.